Chinese enterprises involved in Belt and Road investments may soon adopt RMB-denominated stablecoins to reduce exposure to volatile local currencies, a move that could accelerate the internationalization of the digital RMB. Recent remarks from Liu Jing, chief economist for Greater China at HSBC Global Investment Research, indicate that the convergence of enterprise stablecoin issuance, the digital RMB, and Hong Kong’s new stablecoin framework could reshape cross-border financial flows.
Liu noted that companies investing in emerging market countries often face sudden shifts in local currencies. Without practical hedging tools, these fluctuations raise operational and financial risks. To address this, several large state-owned enterprises have signaled interest in issuing RMB-based stablecoins as payment instruments for overseas projects.
Such stablecoins would allow Chinese firms to manage currency volatility and streamline transactions across jurisdictions. However, multiple RMB stablecoins from different issuers may create fragmentation. According to Liu, this fragmentation could require a central, trusted platform to link them, where the digital RMB could play a critical intermediary role.
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Digital RMB Positioned as a Connector
The People’s Bank of China has already moved toward expanding the digital RMB’s global use. Governor Pan Gongsheng mentioned the establishment of an international operations center for the currency at the June Lujiazui Forum. Liu suggested that such an initiative demonstrates regulators’ readiness to broaden the digital RMB’s application beyond domestic boundaries.
By acting as a universally recognized connector between enterprise-issued stablecoins, the digital RMB could provide settlement certainty and standardization, strengthening its adoption in international trade, particularly along Belt and Road routes.
Hong Kong’s Role as a Launchpad
Hong Kong is expected to play a central role in this process. The city has passed a stablecoin ordinance, providing a regulatory framework for the development of digital payment tokens. While the first issuances may involve Hong Kong dollar-denominated stablecoins, the same structure could support RMB stablecoins.
Hong Kong already serves as the largest global RMB hub and maintains a currency swap agreement with the People’s Bank of China. Liu emphasized that these foundations give Hong Kong a bridgehead position for testing and expanding RMB-linked digital assets.
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