From pilot zones to financial hubs, a dual-track push is emerging to drive the next phase of RMB stablecoin development.

As Hong Kong prepares to implement its new Stablecoin Regulatory Regime on August 1, momentum is building on both sides of the border. Recent signals from China’s central bank and top financial think tanks point toward a coordinated model that links onshore innovation in Shanghai with offshore experiments in Hong Kong.

Shanghai x Hong Kong: Twin Engines for RMB Stablecoins

The People’s Bank of China (PBoC) recently called for scaling the “Shanghai experience” by extending digital RMB pilots to more Free Trade Zones. Meanwhile, the National Institution for Finance & Development proposed joint RMB stablecoin exploration in Shanghai FTZ and Hong Kong, recognizing that Web3-native stablecoins have blurred traditional onshore/offshore boundaries. The suggested approach? A two-pronged system combining onshore-offshore issuance and governance to increase flexibility and regulatory control.

Two Coins, One System: CNYC + CNHC

Economist Yang Tao outlined a dual-model framework:

• CNYC would be issued within Shanghai’s FTZ, led by major banks or payment giants, and distributed through licensed intermediaries.
• CNHC would be issued in Hong Kong, either directly or via subsidiaries of mainland firms, under local regulatory oversight — supporting use cases like cross-border trade, tokenized RWAs, and DeFi integration.

The two tokens could eventually interoperate, enabling on-chain flow and conversion of RMB assets across borders, powered by existing financial infrastructure in both regions.

Regulation Is Still the Biggest Hurdle

As promising as the model sounds, there are still major compliance hurdles — including AML, identity verification, capital backing, and risk isolation. The BIS has also warned that global stablecoins fall short in terms of singleness, elasticity, and integrity, underscoring the need for strong legal and technical frameworks before wide-scale rollout.

Looking Ahead: Opportunity or Overreach?

For China, RMB stablecoins could be a strategic move in the face of global crypto competition — but also a high-stakes play that redefines the line between innovation and control.

👀 What’s your take?

- Can Shanghai and Hong Kongtruly coordinate to build a dual-RMB stablecoin ecosystem?

- Which will launch first — CNYC or CNHC?

- And what unique role will Hong Kong play in the digital RMB era?