China threatened by US stablecoins, G7 urged to tackle Lazarus Group: Asia Express

Beijing urged to shape global stablecoin rules amid sovereignty concerns

Chinese academics are warning that the growth of stablecoins is a rising threat to China’s monetary sovereignty by enshrining the global dominance of the US dollar.

A commentary in China Economic Times argues that the rise of crypto comes with implications for sovereign credit systems, global governance models and the future of money.

China Economic Times is a daily newspaper sponsored by the Development Research Center of the State Council, one of the country’s highest-ranking policy research bodies. Government officials are part of the paper’s main reader base, and commentaries published by the paper often aim to influence or advise on economic strategy.

The authors — Deng Jun, vice dean at the University of International Business and Economics, and Zhang Shuyu, associate professor at Beijing Technology and Business University — describe stablecoins like USDT and USDC as a digital dollar shadow system. Backed by US cash or equivalents, their global expansion enhances dollar liquidity and influence. They argue that if left unchecked, greenback-pegged stablecoins could erode China’s financial autonomy and deepen worldwide reliance on the dollar.

But the authors also call stablecoins a double-edged sword. In the event of mass redemptions, issuers could be forced to liquidate large volumes of short-term US debt. For example, Tether — the issuer of USDT — held more than $120 billion in US Treasury Bills at the end of the first quarter of 2025.

The piece adds that in countries with weak currencies and volatile exchange rates, crypto is increasingly substituting for local money. The commentary outlines a broader geopolitical strategy for China that includes internationalizing its own fiat currency by using blockchain infrastructure to launch low-cost and localized digital yuan services in developing markets.

This is at least the second time in recent weeks that a major state-affiliated think tank in China has spotlighted crypto. In late May, the International Monetary Institute republished a report by the Bitcoin Policy Institute that advocates for Bitcoin as a reserve asset.

Crypto scams derail Thailand’s tourism comeback

Thailand is grappling with a sharp decline in tourism, recording a 13.9% drop in total visitor arrivals in May 2025 compared to the same period last year, as the country’s image suffers in China from negative publicity about a high-profile pig butchering scandal.

Pig butchering scams involve fraudsters building long-term trust with victims before persuading them to invest in fake ventures, often cryptocurrency schemes or suspicious blockchain transactions. These operations have been linked to scam compounds across Southeast Asia and are frequently tied to human trafficking, with victims forced to work under coercion and threat.

The steepest fall in visitor numbers has come from Chinese tourists, historically Thailand’s largest source of arrivals, according to data from the Ministry of Tourism and Sports.

In May, arrivals from China fell to 310,292 — a 44.5% year-on-year decline — marking the third-largest percentage drop among all countries. Only North Korea and the Maldives recorded steeper declines, though both contribute negligible visitor volumes, with North Korea registering almost no arrivals.

Before that, China reported a 30% year-on-year increase in January, but momentum reversed after the abduction of Wang Xing, a 31-year-old Chinese actor. Thai police said Wang was kidnapped during a visit to Thailand and trafficked across the border into Myanmar, where he was held in a compound suspected of operating a pig butchering scam. 

Although Wang was eventually rescued, the incident ignited widespread outrage on Chinese social media and has cast a long shadow over Thailand’s reputation among Chinese tourists.

Tourism remains a vital part of Thailand’s economy, accounting for roughly 12% of gross domestic product and supporting up to 20% of total employment through direct and indirect roles.

The downturn comes despite efforts to revitalize the sector, including new crypto payment trials in major tourist areas earlier this year. Thailand is reportedly exploring deeper crypto payment integrations to attract international travelers. However, these efforts have limited appeal to Chinese tourists, given that crypto transactions are banned in mainland China.