Beijing’s latest decision to halt the rollout of stablecoins in Hong Kong underscores a fundamental tension between financial innovation and centralized political control. While Hong Kong had begun developing a regulatory framework the “Stablecoin Ordinance” passed in mid-2025 to license stablecoin issuers pegged to fiat currencies including the renminbi (RMB), mainland regulators have stepped in to suspend implementation. The People’s Bank of China (PBoC) and other mainland authorities advised delaying planned stablecoin issuances, especially those tied to the RMB, out of concern that they could circulate beyond ... (full story)