Bank

Shift

Rise

<ul>
 <li>The People’s Bank of China opened a digital yuan office in Shanghai to manage cross-border payments using blockchain technology.</li>
 <li>China’s securities regulator has advised investment firms to halt real-world asset tokenization projects in Hong Kong due to risks.</li>
</ul>
China advances its digital currency project with the opening of a new office in Shanghai. The People’s <a href="https://www.ethnews.com/china-and-russia-turn-to-bitcoin-and-other-cryptocurrencies-amid-de-dollarization-and-banking-sanctions/" rel="noopener noreferrer nofollow">Bank of China</a> initiated operations this week.&nbsp;
Official statements indicate the center will facilitate connections between Chinese financial networks and international banks. Lu Lei, a deputy governor at the central bank, stated that basic systems for international <a href="https://www.ethnews.com/trumps-crypto-endgame-the-shocking-plan-to-weaponize-stablecoins-against-chinas-digital-yuan/" rel="noopener noreferrer nofollow">digital yuan payments</a> are already operational. The Shanghai office will concentrate on aiding trade settlements and business investments.
These efforts follow a policy direction set by bank governor Pan Gongsheng last June. The policy aims for greater openness in Chinese financial markets. A <a href="https://www.ethnews.com/china-cracks-down-on-real-world-asset-trading-in-hong-kong/" rel="noopener noreferrer nofollow">core objective</a> involves positioning the yuan as an alternative to the US dollar in international finance.
Meanwhile, a separate regulatory movement is occurring. China’s securities regulator has advised certain investment firms to stop real-world asset tokenization work in Hong Kong.&nbsp;
Share prices for large Chinese investment firms with Hong Kong operations fell following reports of the guidance. Guotai Junan International and GF Securities recorded share price decreases ranging from 2% to 7.25%. The broader market declined by 0.9% on the same day.
This creates a contrast with Hong Kong’s push to become a digital asset hub. The city has spent the last year building a regulatory framework for virtual assets. China, however, banned cryptocurrency trading and mining in 2021.
The post <a href="https://www.ethnews.com/digital-yuans-rise-and-tokenization-fall-chinas-crypto-financial-policy-shift/" rel="noopener noreferrer nofollow">Digital Yuan’s Rise and Tokenization Fall: China’s Crypto-Financial Policy Shift</a> appeared first on <a href="https://www.ethnews.com" rel="noopener noreferrer nofollow">ETHNews</a>.

Digital Yuan’s Rise and Tokenization Fall: China’s Crypto-Financial Policy Shift

ETHNews

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