China previously banned Bitcoin entirely; why is it now researching stablecoins and response strategies?

In fact, we at the upper level are very wise.
The first fatal ban on the crypto industry was on September 4, 2017, commonly referred to as the 94 incident. Just over a month before the 94 event, something happened in the crypto industry that would be recorded in history, resulting in the development of cryptocurrencies racing toward an "anti-efficiency" direction forever. Therefore, our think tank can characterize cryptocurrencies as useless; they are merely a casino. However, blockchain technology is useful, which is why it has always been valued.
Why is it said to be useless? Currency technology must evolve towards higher circulation efficiency, such as metal → coins → paper money → electronic accounts. However, the circulation efficiency of cryptocurrencies, which are counterproductive, is far inferior to that of electronic accounts, making them practically unusable in daily life. The correct development direction is high-efficiency cryptocurrencies, which is why we are working on "digital RMB"; its circulation efficiency is higher than that of electronic accounts.
Therefore, cryptocurrency is something harmful to the general public and useless within our country, so it is certainly worth banning.
So why is there now an emphasis on stablecoins?
The technology of stablecoins is actually very simple, and those on the upper level already know what it is. The so-called "we need to study stablecoins again" is just taking something that has already been thoroughly researched and expanding the scope of learning.
In addition, if it really gets going, there will be a lot of legal regulations and institutional construction work to be done, which is a key focus of research.
Why didn’t we start paying attention earlier? Because stablecoins are useless domestically; their purpose is to go abroad and erode the currencies of other countries, establishing monetary hegemony, and then sucking blood through seigniorage. This practice is seriously inconsistent with our image as a major power and aligns well with the United States. Therefore, we are waiting for the U.S. to take the lead. Now that the U.S. has taken the lead, when we say we want to create stablecoins, it’s no longer about actively establishing monetary hegemony; the bad reputation is on the U.S.
China is not in a hurry at all regarding the issue of currency going abroad, because what China values most is the internal circulation, firmly refusing to rely on external exploitation to get by. Once it becomes dependent on exploitation, it will be difficult to stop later, just like an addict with many weaknesses. But the United States is very anxious.
Will that be able to compete with the United States? Will it be too late to catch the bus?
In simple terms, this is a global competition between the currencies of China and the United States.
First of all, as some respondents mentioned, China can also issue US dollar stablecoins based on its massive reserves of US dollars, which allows China to collect seigniorage and also manipulate the supply of US dollar stablecoins. China's means are more diverse.
In other words, in terms of stability and control, the Renminbi stablecoin is greater than the US dollar stablecoin.
Next, it will depend on the choices of cross-border trade enterprises and the people of third world countries.
Here, China's stablecoin has two huge advantages:
The front end is more mature. China's mobile payment software is more developed and has already flourished overseas, which lowers the threshold for them to use Chinese stablecoins.
There is a lot of goods. Currency is ultimately meant to be used to buy goods, and if the sellers (which is China, leading in exports) only recognize China's stablecoin, then the buyers will be more inclined to hold.
In addition, Trump has clearly stated that stablecoins are used to solve the U.S. debt problem, which is obviously a way to exploit. In contrast, the RMB stablecoin does not exploit and will become a safe haven. Foreigners are not foolish; those who understand the situation a bit will surely choose a non-exploiting currency.
So, in the field of stablecoins, China's strategy is to be second, taking its time while others rush. The bad things are all left for the United States to do; once it messes up, the RMB can rightfully take over, achieving both currency hegemony and a good reputation.