China’s State Council is poised to review a comprehensive blueprint this month, setting the stage for potentially approving a roadmap to expand the yuan’s global utilization. This plan encompasses exploring the use of yuan-backed stablecoins, establishing targets for offshore usage, and detailing responsibilities across domestic regulators. Furthermore, it includes essential risk-management guidelines.

Yuan-Backed Stablecoins: A New Era for Digital Assets

If approved, a regulated stablecoin in China would signify a significant shift in Beijing’s approach to digital assets. Historically, China’s digital currency efforts have focused on the central bank’s digital yuan rather than privately issued tokens. However, yuan-backed stablecoins offer numerous benefits such as near-instant, low-cost, 24/7 settlements, playing a crucial role in global crypto markets dominated by dollar-pegged tokens.

China is now assessing whether a yuan-denominated stablecoin could facilitate cross-border trade and payments while adhering to China’s compliance framework. This move could provide a blockchain-based alternative to dollar-pegged tokens like Tether’s USDT and Circle’s USDC, which currently dominate crypto capital flows.

Global Payment Dynamics and China’s Ambitions

This initiative arises as the yuan’s share in global payments dwindled to 2.88% in June, its lowest in two years, compared to the dollar’s commanding 47% share, according to SWIFT data. Meanwhile, the U.S. has embraced a regulatory framework for stablecoins under the GENIUS ACT, exerting pressure on China to clarify its stance.

In Hong Kong, officials are developing a licensing regime for fiat-backed stablecoins to attract issuers and stimulate payment activities. Concurrently, on the mainland, the People’s Bank of China is scaling the e-CNY pilot and establishing an e-CNY center to boost international reach, acknowledging stablecoins’ influence in cross-border payments.

Despite the potential benefits, Chinese policymakers remain cautious of investor hype and the risks of illicit activities surrounding privately issued tokens. Recent efforts have been made to curb stablecoin promotions on the mainland, with authorities in Shenzhen highlighting concerns about fiat-pegged token fraud.

This evolving landscape marks a pivotal moment for China’s stablecoin regulation and the global financial ecosystem. As China weighs its options, the world watches closely to see how yuan-backed stablecoins might reshape international trade and finance.

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The announcement, made on Monday, revealed that some malicious organizations are exploiting the public’s limited knowledge of stablecoins. They use attractive phrases like “financial innovation” and “digital assets” as bait to draw individuals into investment scams.

“These organizations take advantage of new ideas like stablecoins to promote alleged investment projects involving ‘virtual currencies,’ ‘virtual assets,’ and ‘digital assets,'” stated Shenzhen’s Office of the Special Working Group for Preventing and Combating Illegal Financial Activities in a translated notice.

The authorities also stated that these entities engage in deceptive public advertising to raise funds from the public, leading to unlawful activities such as gambling, fraud, pyramid schemes, and money laundering.

The warning is significant given the recent global interest in stablecoins. Last month, Pan Gongsheng, the governor of China’s central bank, acknowledged that stablecoins and central bank digital currencies are transforming the global payment infrastructure.

In May, Hong Kong’s Legislative Council passed a stablecoin bill, establishing a licensing regime for stablecoin issuers. And last month, the U.S. Senate passed the GENIUS Act, a landmark stablecoin bill, moving it to the House for further consideration.

Christopher Hui, Secretary for Financial Services and the Treasury in Hong Kong, hinted in a Monday interview with the local newspaper Ming Pao that the region might issue stablecoin licenses this year, but the number of licenses granted is expected to remain limited.

Disclaimer: The Block is an independent media outlet that provides news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block operates independently to deliver objective, impactful, and timely information about the crypto industry.

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During a discussion with Jack Altman on the Uncapped Podcast, Andreessen suggested that different regions and societies would require AI systems trained on data that conforms to their own cultural norms and societal structures. Andreessen remarked to Altman:

“We are witnessing a two-horse race. This competition mirrors what the Cold War was against the Soviet Union in the last century. China certainly has aspirations to shape the world based on their concepts of societal organization.”

Andreessen proposed that AI will serve as the “control layer of the future,” providing the primary interface through which humans interact with vital infrastructure and services, encompassing healthcare, education, transport, and legal sectors.

“Given a choice between AI shaped by American values and one influenced by the Chinese Communist Party, the choice would be crystal clear,” Andreessen stated.

Geopolitical considerations continue to play a significant role in the advancement of AI technology as global leaders, including former US President Donald Trump, have pledged to establish their nations as AI powerhouses in the coming decades.

Despite a recent paper from tech behemoth Apple arguing that artificial general intelligence (AGI) is still far from being realized, concerns about the potential risks and impacts of AI on society persist among analysts, consumers, and software developers. The range of potential challenges includes job displacement due to AI, the automation of military weapons, cyberattacks by autonomous machines, and the threat of AI-driven misinformation undermining democratic processes.

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Trump shared via Truth Social that the talks were fruitful and amicable, leading to a comprehensive reset of relations and a renewed commitment to open up Chinese markets to American enterprises. “The conversation was extensive, with several agreements reached,” Trump noted. “We managed to negotiate a complete reset in a friendly yet constructive manner. Our aim is to encourage the opening up of China to American businesses, for the mutual benefit of both nations. WE HAVE MADE TREMENDOUS PROGRESS!!!”

The market perceived Trump’s statement as a signal of declining global tensions, which further bolstered Bitcoin’s bullish trend, previously stimulated by macro and institutional factors.

Bitcoin’s upward trajectory has been supported by several factors. Jerome Powell, the Federal Reserve Chair, hinted on Wednesday that the central bank is prepared to reduce interest rates if the situation calls for it, reassuring the market amidst controlled inflation and easing trade tensions. Bitcoin soared past $99,000 mid-week before rallying further to reach $100,000.

Bitfinex analysts believe the surge above $100,000 signifies genuine demand and not mere speculative excess. They noted that strong fundamentals and improved macro perspectives are driving Bitcoin’s clean breakout above $100k.

They also highlighted the substantial spot ETF inflows, strong on-chain accumulation, and declining exchange balances as indicators of actual demand. Simultaneously, Bitcoin continues to see robust corporate adoption, with firms like Strategy, MARA Holdings, and Metaplanet continuing their accumulation strategy while newer Bitcoin-focused companies emerge.

Earlier this week, Strive Asset Management, supported by Vivek Ramaswamy, announced its merger with Asset Entities to create a publicly traded Bitcoin treasury company. The new entity aims to maximize Bitcoin exposure per share, with the goal of raising up to $1 billion through equity and debt.

David Bailey, CEO of BTC Inc., recently raised $300 million for Nakamoto, a new Bitcoin investment firm, as reported by CNBC. The company secured $200 million in equity and $100 million in convertible debt, with plans to go public by merging with a Nasdaq-listed company this summer.

“Despite short-term volatility, the long-term trend for Bitcoin remains upward. This strength is supported by a stable US equity market, increasing global liquidity, and the growing acceptance of Bitcoin as a perfectly scarce monetary asset,” commented Joe Burnett, Director of Market Research at Unchained.

“We are also witnessing an increasing number of Bitcoin treasury companies using financial engineering and cash flow to amass Bitcoin—a topic I will examine in more detail in next Wednesday’s online event with Strive’s leadership team,” he added.

These developments come after Cantor Fitzgerald, in partnership with Tether and SoftBank, launched Twenty One, a Bitcoin-centric firm aiming to accumulate over 42,000 BTC. The initiative, spearheaded by Jack Mallers, seeks to develop financial products native to the Bitcoin standard.

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Reuters revealed on Wednesday that these cryptos are typically confiscated from illegal activities. Experts in law have expressed concerns over this approach, suggesting it could engender non-transparent procedures and encourage corruption. The report was based on court and transaction documents.

While cryptocurrency trading and mining are still prohibited in mainland China, Hong Kong has continually declared its objective to evolve into a crypto center with a licensing scheme for trading. Despite the restrictions, the Chinese government has employed local businesses to aid in the disposal of seized crypto assets. Though individual crypto trading is illegal, running a company that aids the government in cryptocurrency disposal is still allowed, attracting more and more participants.

For instance, Jiafenxiang, a tech company based in Shenzhen, has aided the sale of cryptocurrencies worth more than 3 billion yuan ($408 million) in offshore markets since 2018 on behalf of several local governments in Jiangsu province, including the cities of Xuzhou, Hua’an, and Taizhou, as per the report.

Transaction records mentioned by Reuters indicate that the proceeds in U.S. dollars were first converted to yuan via local banks before being moved to regional finance bureau accounts. As per BitcoinTreasuries.net data, China holds approximately 190,000 BTC, making it the world’s second-largest national bitcoin holder, with the U.S. leading with 198,012 BTC.

The handling of crypto in legal cases has become an important issue in China’s judicial system, leading to numerous seminars on the topic. In February, a seminar was held in Beijing where representatives from the Supreme People’s Court discussed research studies and the legal treatment of cryptocurrency with other top judiciary authorities and universities.

In its latest annual financial stability report, the PBOC, China’s central bank, emphasized crypto regulation and mentioned it is refining an international regulatory framework for crypto assets.

Disclaimer: The Block is an independent media outlet offering news, research, and data. Foresight Ventures, a major investor of The Block as of November 2023, also invests in other crypto companies. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block maintains its independence to provide unbiased, impactful, and timely information about the crypto industry. Here are our current financial disclosures. © 2025 The Block. All Rights Reserved. This article is for informational purposes only and should not be used as legal, tax, investment, financial, or other advice.

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“To secure our position in the AI race, it’s crucial for the US to make significant strides in open source, and Llama 4 has allowed us to regain our leading position,” expressed Sacks in an X post dated April 5. This comes amid the increasing speculations surrounding the fierce competition for the top spot in the global AI race between the USA and China.

Having been vocal about the AI race since assuming his role after former US President Donald Trump’s inauguration on January 20, Sacks stated with certainty that he is “confident about the US’s prospects, but complacency is not an option.”

Meta’s AI division disclosed in an X post on the same day that they are rolling out the fourth iteration of their Llama models, Llama 4 Scout and Llama 4 Maverick. As per Meta, these models are “our most sophisticated models to date and lead their class in multimodality.”

The Llama 4 Scout model by Meta boasts of 17 billion active parameters and utilizes 16 experts. Meta asserts that it surpasses its competitors — Gemma 3, Gemini 2.0 Flash-lite, and Mistral 3.1 — “across a wide array of widely recognized benchmarks.” The Llama 4 Maverick model also possesses 17 billion active parameters but is equipped with 128 experts. It is claimed to outperform GPT-4o and Gemini 2.0 Flash “across a wide array of widely recognized benchmarks.”

In July 2024, Meta’s CEO Mark Zuckerberg predicted that by 2025, Llama models would evolve to be “the most advanced in the sector.” Since the release of the limited version of Llama 1 in February 2023, Meta has been overwhelmed by the demand, receiving over 100,000 requests for access.

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The stolen data is said to contain proprietary information about Google’s software platform and hardware infrastructure that powers the company’s AI supercomputing systems. Ding, a software engineer at Google since 2019, is accused of secretly associating with two Chinese tech firms and intending to aid the Chinese government by misappropriating Google’s trade secrets.

According to court documents, Ding initiated conversations with the CTO of a Chinese tech firm in June 2022. By May 2023, he had privately established an AI and machine-learning company in China, where he served as CEO. The DOJ alleges that Ding pilfered sensitive trade secrets, including information about Google’s custom-built SmartNIC, Tensor Processing Unit (TPU), and Graphics Processing Unit (GPU) chips and systems.

The DOJ further alleges that Ding leaked sensitive software designed for chip communications and future AI innovations to favor the government of the People’s Republic of China (PRC). The DOJ further claims that Ding composed and distributed PowerPoint presentations to his Chinese company’s employees, which cited PRC national policies and talent programs with statements like, “will help China to have computing power infrastructure capabilities that are on par with the international level.”

The FBI is currently investigating the case, and Ding’s guilt has yet to be established. In March 2024, Ding was initially indicted on four counts of trade secrets theft. If convicted on all seven counts of economic espionage and seven counts of trade secrets theft, Ding could face up to 175 years in prison and fines of up to $36.75 million. However, the final fine will be determined based on the US Sentencing Guidelines and other factors.

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Bitcoin’s journey over the past 24 hours has been a rollercoaster, punctuated by uncertainty over U.S. trade tariffs on Mexico and Canada. BTC experienced a fleeting rally to $102,000 after U.S. President Donald Trump announced a 30-day delay in imposing tariffs on these North American countries.

However, the implementation of U.S. tariffs on China today sparked a sharp downturn, forcing BTC below the $100,000 mark. In response, China’s Ministry of Finance unveiled new countermeasures. Starting February 10, China will levy an additional 15% tariff on coal and liquefied natural gas, coupled with a 10% tariff on agricultural equipment, crude oil, and select vehicles.

Furthermore, Beijing accuses the U.S. of breaching World Trade Organization (WTO) rules with its unilateral tariff policies. The Chinese Ministry of Commerce also announced plans to tighten export controls on key raw materials like molybdenum, indium, bismuth, tellurium, and tungsten, citing national security as the reason.

As trade hostilities between the U.S. and China intensify, market analysts predict increased volatility in the crypto market. Well-respected crypto strategist Michael van de Poppe shared his perspective, expressing optimism that Bitcoin would hit new all-time highs in February, provided it stays above $93K.

Crypto trader and investor Phoenix suggested that BTC might find a new trading range amid the ongoing trade war. However, history indicates that increased tariffs could spell bad news for cryptocurrencies. Web3 enthusiast merts.eth highlighted in an X post that BTC suffered a 65% fall in 2018 when Trump first instigated a trade war with China. The impact wasn’t just confined to digital assets, as the S&P 500 also fell 12% in the weeks post-tariff implementation.

As Bitcoin battles to maintain the $100,000 price point, worries are growing about a possible further price drop. Crypto analyst Ali Martinez recently noted that if BTC can’t hold the $97,190 support level, the leading digital asset could face more hardships. At the time of writing, BTC’s trading price is $99,961, marking a 1% increase in the past 24 hours.

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The declaration of these tariffs by China is a response to the additional tariffs imposed by the U.S. on Chinese goods that came into effect today. In a translated statement, the Chinese ministry stated, “The unilateral imposition of tariffs by the U.S. gravely infringes upon the rules of the World Trade Organization.”

In the meantime, on Tuesday, the Ministry of Commerce in China declared that it will tighten export controls on goods containing tungsten, tellurium, bismuth, molybdenum, and indium, citing the necessity to protect national interests and security.

Currently, Bitcoin is trading at approximately $99,300, having recovered from a dip to around $98,500 earlier today and from $92,800 on Monday amidst a wider sell-off. After U.S. President Donald Trump announced a temporary halt on tariff threats between the U.S. and Mexico, Bitcoin saw a sharp rebound to over $100,000 on Monday.

Presto Research’s research analyst, Min Jung, told The Block, “Even though Bitcoin is often juxtaposed with gold as a digital alternative, it is still predominantly viewed as a risk asset by many investors. Therefore, the 10% retaliatory tariff by China on the U.S. is expected to exert pressure on risk assets, including cryptocurrencies, much like equities.”

“However, the initial market reaction might have been an overreaction, as evidenced by the V-shaped recovery preceding the announcement,” Jung added. “The long-term effects will hinge on whether this signifies the start of a widespread trade escalation or remains an isolated incident. Regardless, we anticipate heightened volatility as tariff-related news continues to influence market sentiment.”

Justin d’Anethan, Liquifi’s head of sales, expressed that while the initial market unease was linked to Trump’s tariffs on Mexico and Canada, “it’s becoming apparent that those were just the preliminary rounds — the real escalation is occurring with China, and potentially Europe next.”

Nick Ruck, director of LVRG Research, pointed out that a full-blown trade war could further extend the sell-off of crypto assets unless the US can negotiate a halt or delay similar to those with Canada and Mexico.

Disclaimer: The Block is an independent news source offering news, research, and data. Foresight Ventures, a major investor in The Block since November 2023, invests in various companies in the crypto sector. Crypto exchange Bitget serves as an anchor LP for Foresight Ventures. The Block remains autonomous, providing objective, impactful, and timely crypto industry information. Please see our current financial disclosures. This article is shared for informational purposes only and should not be construed as legal, tax, investment, financial, or other advice.

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“Crypto brings both risks and opportunities,” said Zhu, as quoted by Sina News. He warned about the potential negative impacts on capital markets but highlighted the necessity of keeping up with global policy shifts. The ex-minister also called cryptocurrency a crucial aspect of the evolving digital economy.

Zhu directly referred to comments made by U.S. Republican Presidential Candidate Donald Trump, who stressed the urgency for America to fully embrace crypto or risk falling behind China. At the July Bitcoin Conference in Nashville, Trump compared the crypto industry to the steel industry of the early 20th century, stating, “It could eventually outshine gold.”

In addition, Zhu acknowledged the SEC’s approval of Bitcoin {{BTC}} and Ether {{ETH}} exchange-traded funds (ETFs), which faced initial resistance. This reflects a more open stance in some parts of the world, while mainland China remains conservative about crypto.

Notably, Hong Kong, with its semi-autonomous governance, has taken a more favorable approach, listing Bitcoin and Ether ETFs and encouraging crypto-related businesses to establish a foothold in the city.

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