Are stablecoins becoming a "battleground"? China, the US, and South Korea have started a global stablecoin competition!

In the summer of 2025, a term that originally belonged to the crypto world—stablecoin—is experiencing unprecedented popularity, simultaneously igniting the policy agendas and capital markets of Washington, Beijing, and Seoul. It is no longer just a Medium of Exchange or a hedging tool in the digital asset world, but is rapidly evolving into a "battleground" that influences great power competition and reshapes the international financial landscape. From the accelerated advancement of the GENIUS Act on Capitol Hill in the United States, to Chinese tech giants making inroads through Hong Kong; from South Korea ambitiously launching the Basic Law on digital assets, to Wall Street's frenzied pursuit of the stablecoin issuer Circle's IPO. A global competition surrounding stablecoins has already begun, and the United States, China, and South Korea are becoming the core protagonists of this new era of currency wars with distinctly different yet interconnected strategies. The comprehensive offensive of the United States As the dominant force in the current global financial system, the United States has shifted its attitude towards stablecoins from cautious observation to a full-scale offensive, with a clear and grand goal: to seamlessly extend the dominance of the US dollar into the digital world and achieve "digital dollarization." The strategy of the United States is multidimensional. First, at the legislative level, the U.S. Congress is vigorously promoting the "GENIUS Act," aimed at establishing a clear and unified regulatory framework for USD stablecoins. The bill requires issuers to hold a 1:1 reserve of high-quality assets and to operate under a license, not only to protect investors but also to export an "American standard" to the global market, providing a trust foundation for the global expansion of USD stablecoins. The optimistic expectations of U.S. Treasury Secretary Scott Bessent have injected a strong dose of confidence into this offensive. He publicly stated that it is "very reasonable" for the stablecoin market to expand to over $2 trillion in the coming years. In his view, every dollar stablecoin circulating on-chain is consolidating and strengthening the global position of the dollar. At the same time, the business community and the capital market have also responded enthusiastically. E-commerce giant Amazon and retail leader Walmart are evaluating the issuance of their own stablecoins to bypass traditional credit card networks and significantly reduce annual transaction costs by billions of dollars. Meanwhile, the successful listing of USDC issuer Circle on the New York Stock Exchange, with its stock price soaring nearly seven times in just a few days, has completely ignited Wall Street's enthusiasm, proving the extreme demand in the capital market for compliant stablecoin issuers. Legislation establishes standards, government endorses visions, enterprises seek applications, and the Capital Market embraces them. The United States is trying to leverage its first-mover advantage to inject the blood of the dollar into every capillary of the global digital economy. A revolution focusing on "pathways" rather than "the currency itself" is quietly consolidating the hegemony of the dollar. China's strategic counterattack In the face of the strong impact of the US dollar stablecoin, there is a strong sense of urgency spreading among China's political, academic, and business circles. From former central bank governor Zhou Xiaochuan to current governor Pan Gongsheng, as well as major national think tanks and brokerage firms, a consensus is forming: China cannot fall behind in this wave of digital currency and must respond actively. However, China's approach is filled with strategically Eastern wisdom. Due to strict regulations on Crypto Assets in mainland China and a highly developed mobile payment system, issuing a Renminbi stablecoin domestically is not a pressing issue. Thus, Hong Kong has become the perfect "firewall" and "experimental field" for this strategic counterattack. The "Stablecoin Regulation" in Hong Kong, which will take effect on August 1, 2025, provides a clear compliance pathway for global stablecoin issuers. This door has first attracted China's own tech giants. Ant Group, the parent company of Alipay, and e-commerce giant JD.com have successively announced plans to apply for stablecoin licenses in Hong Kong. Their motives are very pragmatic: to use stablecoins to solve the pain points of high cross-border payment costs and low efficiency in their vast business ecosystem. JD.com founder Liu Qiangdong even envisions that the JD stablecoin could become a global payment method in the future. Behind the actions of these enterprises lies a grand national-level strategic vision – the development of an offshore RMB stablecoin. Experts from top think tanks such as the Chinese Academy of Social Sciences and the State Council Development Research Center have all proposed that China should seize the opportunity to support Hong Kong in being the first to pilot the launch of an offshore RMB stablecoin (CNHC). The brilliance of this strategy lies in its overseas issuance, which can effectively isolate it from the domestic capital control system. At the same time, leveraging the borderless characteristics of blockchain opens up a brand new and efficient digital path for the circulation and use of the Renminbi globally. It provides a non-US dollar option in the global stablecoin market to counter the trend of "digital dollarization." Wang Yongli, the former vice president of the Bank of China, has bluntly stated that the stablecoin sector has become a "battlefield that must be contested and fought over." China needs to adjust its policies and actively participate. From the central bank and the Hong Kong Monetary Authority jointly launching the "Cross-Border Payment Link" to the intensive voices of top entrepreneurs and economists, a layout aimed at using stablecoins for the "bending overtaking" of the internationalization of the RMB is quietly unfolding in Hong Kong, this experimental field. South Korea's autonomous ambitions In this game between the two powers of China and the United States, South Korea, as an important economy, has also shown an ambition to not fall behind. However, unlike China and the United States, South Korea's strategy focuses more on "internal defense" and "independent development." The ruling party in South Korea recently announced a significant proposal called the "Basic Law on Digital Assets," one of the core aspects of which is to establish a strict licensing system for the issuance of stablecoins. According to the proposal, all stablecoin issuers must obtain official permission and hold at least 500 million won (approximately 368,000 USD) of their own capital. The strategic intention of this move is very clear: to encourage the development of stablecoins based on the Korean won, and to prevent domestic funds from flowing into the stablecoin market based on the US dollar or other foreign currencies. This is a fulfillment of the South Korean president's campaign promise, aimed at keeping the benefits of digital asset development within the country and building a self-reliant digital financial ecosystem centered around the Korean won. South Korea's legislation is, on one hand, in line with the global regulatory trends of places like the United States and Hong Kong, demonstrating its determination to participate in global digital financial governance; on the other hand, it stems from the practical consideration of protecting its national currency sovereignty and financial system. By establishing a presidentially affiliated "Digital Asset Committee" and imposing severe penalties on market misconduct, South Korea hopes to firmly grasp the dominant position in regulation while promoting open innovation. The horn of the competition has sounded. From Washington's global layout, to Beijing's borrowing port to go to sea, to Seoul's solid foundation, the strategic layout of the three major economies around stablecoins has clearly outlined the competitive map of the future digital financial world. The essence of this competition has long gone beyond technology itself, but has evolved into a direct collision of national will, economic interests and global influence. The United States hopes to use this to perpetuate its century-old monetary hegemony; China sees it as a historic opportunity to internationalize the renminbi and challenge the existing pattern. South Korea, on the other hand, is trying to find the best way to develop independently and protect its own interests. Stablecoin, this digital product born from blockchain, is bringing the competition of the international monetary system into a whole new dimension in an unprecedented way. This competition has just begun, and its final outcome will not only determine who will be the next leader of the digital finance era but will also profoundly affect the global economic order for decades to come.