According to a report published by the Shanghai Securities News, Industrial Bank of China will prioritize stablecoin research and expand its “AI+” initiatives.
At its mid-year work conference, Industrial Bank announced plans to accelerate its transformation from “Digital Industrial Bank” to “Smart Industrial Bank.” This initiative will be supported by its “Data Element X” initiative and measures to strengthen digital infrastructure.
Stablecoins and Artificial Intelligence Empower “Smart Industrial Bank”
Industrial Bank stated that it will focus on refining its management capabilities going forward. Its plans include deepening customer engagement, optimizing liability costs, and strengthening its regional branch network. The bank also noted that it will adjust its risk appetite and strengthen accountability mechanisms at all levels of management.
By combining stablecoin research with AI applications, Industrial Bank expressed its desire to build a more resilient foundation for financial services while aligning with China’s broader digital economy development agenda.
The bank also announced plans to advance reforms within its risk control framework, pledging to strengthen forward-looking risk identification and early warning mechanisms. Furthermore, it proposed expanding settlement-type liabilities and optimizing pricing structures to enhance its asset-liability management capabilities.
The report states that Industrial Bank will also promote the development of industrial finance, strengthen its research-oriented strategy, and integrate the “Three Business Cards” policy with the “Five Major Articles” project to promote coordinated development.
China Faces Challenges of Currency Internationalization
At a recent closed-door seminar hosted by the New Economist Intelligence Unit, former Vice Minister of Finance Zhu Guangyao called on China to incorporate RMB stablecoins into its top-level national financial strategy.
Zhu described dollar-pegged stablecoins as an extension of the US monetary strategy, calling them the “third phase of the Bretton Woods system.” He noted that the total transaction volume of such stablecoins could reach $27.6 trillion by 2024, surpassing Visa and Mastercard, and their cross-border payment volume would exceed $250 trillion.
He suggested using Hong Kong as a regulatory testing ground to promote the simultaneous issuance of offshore and onshore RMB stablecoins, and closely monitor the implementation of US stablecoin regulations.
Zhu Guangyao believes that a RMB stablecoin has the potential to expand payment channels, freeing it from reliance on SWIFT and CHIPS, and enabling the gradual internationalization of the RMB while adhering to international reserve and auditing standards.
For China, incorporating the development of a central bank digital currency (CBDC) and stablecoins into cross-border trade initiatives such as the Belt and Road Initiative could further expand the global use of the RMB without fully liberalizing the capital account.
