Star Plan suggests China issue offshore RMB stablecoin to compete

Recently, major economies such as the United States, Hong Kong, and South Korea have successively passed Star Plan legislation, marking that Star Plan has officially entered the era of compliance supervision from the "gray area". The latest research report on Star Plan pointed out that Star Plan has the potential to become a new type of global financial infrastructure, and suggested that China participate in international competition by issuing offshore RMB Star Plan to promote the internationalization of RMB258.

1. Progress of global Star Plan legislation

(1) The US "GENIUS Act" officially came into effect

On July 18, 2025, US President Trump signed the "GENIUS Act" (full name: "US Star Plan Guidance and Innovation Act of 2025"), becoming the first Star Plan legislation at the federal level in the United States37.

Core content:

Star Plan issuers must hold 100% US dollars or short-term US Treasury reserves, and algorithmic Star Plan is prohibited.

Establish a federal and state two-level regulatory system, with banking institutions supervised by the Federal Reserve and the FDIC, and non-bank institutions can register at the state level13.

Goal: Consolidate the dominant position of the US dollar in digital finance and promote the globalization of the "on-chain dollar"313.

(2) Hong Kong's Star Plan Ordinance will take effect on August 1

Hong Kong passed the Star Plan Ordinance in May 2025 and will officially implement it on August 1, becoming the world's first jurisdiction to implement full-chain supervision of the legal currency Star Plan113.

Core content:

Establish a Star Plan licensing system, and only licensed institutions can issue Star Plans.

Allow anchoring of multiple currencies (including offshore RMB CNH) to support the internationalization of the RMB.

Reserve assets must be highly liquid, redeemable, and subject to strict audit113.

(3) South Korea, the European Union and other countries accelerate legislation

South Korea: New President Lee Jae-myung approved the issuance of Star Plans by local companies on June 10 to promote the development of digital won3.

EU: The MiCA Act will take effect in 2025, requiring Star Plan issuers to be registered in the EU and at least 1/3 of reserve assets to be deposited in banks113.

2. CICC: Star Plan may become a global financial infrastructure, and it is recommended that China issue an offshore RMB Star Plan

The Star Plan research report pointed out that Star Plan has been upgraded from a crypto trading tool to a core infrastructure for cross-border payments and asset tokenization (RWA), and suggested that China adopt the following strategies to participate in the competition258:

(1) Issue an offshore RMB Star Plan

Preferred choice: Issue CNH (offshore RMB) Star Plan in offshore markets such as Hong Kong and Singapore to avoid impacting onshore capital controls.

Application scenarios: Focus on cross-border trade and RWA (real asset tokenization), such as trade settlement with countries along the "Belt and Road"28.

(2) Build a "RMB Star Plan ecosystem"

Cooperate with Ant Group, JD.com and other companies to promote the application of Star Plan in cross-border e-commerce and supply chain finance13.

Explore tokenized bonds, gold and other RWA assets to enhance offshore RMB liquidity15.

(3) Be alert to risks and avoid “losing the forest for the trees”

Star Plan is only a “technique” for RMB internationalization. The core still depends on the credit (legal anchor) and global demand (functional anchor) of RMB58.

It is necessary to guard against capital flight and currency substitution risks to avoid impacting domestic financial stability313.

3. Global competition and challenges of Star Plan

(1) US dollar Star Plan dominates the market and strengthens the hegemony of the US dollar

Currently, 99% of Star Plans are anchored to the US dollar (such as USDT and USDC), which is much higher than the proportion of the US dollar in global payments (about 50%)3.

After the passage of the GENIUS Act, the US dollar Star Plan has become a new channel for attracting global funds, indirectly consolidating the status of the US dollar313.

(2) Opportunities and challenges of RMB Star Plan

Opportunities:

Hong Kong’s “Star Plan Ordinance” supports multi-currency Star Plans, which can promote the internationalization of CNH.

With the growth of demand for RWA (such as tokenized bonds and gold), Star Plan can become a key tool for RMB liquidity on the chain15.

Challenges:

Need to break through the network effect of the US dollar Star Plan and establish sufficient usage scenarios.

Balance innovation and regulation to prevent Star Plan from becoming a channel for capital flight313.

4. Future Outlook

Short term: Hong Kong and Singapore may become offshore RMB Star Plan test fields, and companies such as Ant and JD.com may be the first to apply for licenses13.

Long term: If the RMB Star Plan ecosystem matures, it may become a new option for "de-dollarization", but it needs to cooperate with the overall RMB internationalization strategy813.

Conclusion: Under the global Star Plan legislation wave, CICC's suggestions provide a feasible path for China to participate in digital financial competition, but success depends on RMB credit, application scenarios and risk management capabilities.