Chinese Firms Eye RMB Stablecoins for Projects, Boosting the Use of Digital RMB

• Chinese firms may adopt RMB stablecoins to manage Belt and Road currency risks.
• Digital RMB could unify enterprise stablecoins and boost international trade adoption.
• Hong Kong’s stablecoin law positions it as a hub for RMB digital asset expansion.

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…

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