Why Chinese Investors Don’t Welcome Dollar Stablecoins Any More
Chinese investors are abandoning dollar stablecoins like USDT because the strengthening yuan erodes their value, compounded by increased regulatory scrutiny.Summary
Chinese crypto investors are reconsidering their reliance on dollar-pegged stablecoins like USDT because the offshore renminbi (RMB) has significantly appreciated against the dollar, causing dollar-denominated assets to quietly lose value when measured in yuan terms. For example, converting 100,000 yuan to USDT six months ago results in a loss when converting back now due to the USD weakening and the RMB strengthening. This shift is supported by factors like aggressive Fed rate cuts and strong capital inflows into China's stock market. Furthermore, regulatory pressure from Chinese authorities, who view stablecoins as a risk for money laundering and illegal capital transfers, adds to the uncertainty, pushing the USDT-to-RMB rate down on P2P markets. Consequently, Chinese investors are pivoting toward tokenized real-world assets, such as tokenized US equities and gold, to maintain dollar exposure while seeking returns that offset currency depreciation and regulatory risks.
(Source：BeInCrypto)