Facing increasing regulatory pressure, China Poly Group has officially denied any involvement with a Hong Kong stablecoin project. This denial comes as authorities prioritize state-backed digital currencies, impacting private ventures and market dynamics in Hong Kong’s crypto landscape. Analysts highlight the shift towards government-backed initiatives like the e-CNY, which aligns with China’s regulatory stance, favoring such projects over private stablecoins. This denial has further implications for yuan-backed stablecoins, as Hong Kong authorities remain cautious about approving private issuers. The Hong Kong Monetary Authority’s stance remains unchanged: no stablecoin issuers have been approved and the focus is on private stablecoins under scrutiny. Observers note these developments may deter investment in similar projects due to the regulatory challenges faced by stablecoin ventures. China’s approach favors state-backed blockchain initiatives, aligning with broader economic strategies and signaling a push toward centralizing digital finance with the e-CNY as a primary focus. This indicates a trend away from private stablecoins, potentially impacting investor confidence and innovation in the space.