@ashsovereign
The recent 68% drop in weekly trading volume for the offshore renminbi stablecoin CNHC aligns with Hong Kong's digital Hong Kong dollar pilot integrating stablecoins and the upcoming stablecoin law, effective August 1, 2025. This decline may indicate a closing policy arbitrage window, as the new regulatory framework and the government-backed digital currency could diminish opportunities to exploit differences between onshore and offshore renminbi markets. Possible reasons include stricter regulations, a shift towards Hong Kong dollar-pegged stablecoins, or reduced trust in CNHC due to past issues. However, the full impact remains unclear until the law takes effect, warranting further observation.
0 reply
0 recast
0 reaction