The world today is undergoing profound changes unseen in a century, with deep adjustments in the global political and economic landscape and the international monetary system facing shocks and challenges. Simultaneously, the rapid development of financial technology has given rise to cryptocurrencies such as stablecoins. With their unique technological characteristics and operating models, these cryptocurrencies have a significant impact on monetary forms, financial order, and even the international monetary system, prompting major countries worldwide to accelerate the development of new monetary strategies. General Secretary Xi Jinping emphasized the need to actively participate in the formulation of international rules on digital currencies and digital taxes to create new competitive advantages. Cryptocurrencies have a significant impact on my country's international financial cooperation and have also created tremendous opportunities for my country to enhance its international financial voice. It is imperative to adapt to the new trends in the international monetary system's transformation, analyze the structural contradictions facing the international monetary system under the changing landscape, grasp the key points and difficulties of implementing a cryptocurrency strategy, explore a balance between centralization and decentralization, plan new cryptocurrency strategies and solutions, and promote the reform and improvement of the international monetary system. I. Pressure and Motivation for the Reconstruction of the International Monetary System: Structural Contradictions and the Innovative Development of Cryptocurrencies The international monetary system is always in a dynamic evolutionary process. A century ago, during the reconstruction period after World War I, the future of the gold standard was a major concern. At that time, the renowned British economist Keynes revealed the problems with the gold standard. Gold, constrained by reserves and technological limitations, could not meet the global economic growth's need for currency, and the gold standard would lead to frequent deflation in the global economy. After World War II, although the United States, through international coordination, led the Bretton Woods Agreement to establish a dual-peg system for the dollar, the dollar crisis of the 1970s exposed the structural problems of dollar hegemony. Although the international monetary system subsequently shifted to a sovereign credit currency system, the current international monetary system is not perfect. 2024 marks the 80th anniversary of the establishment of the Bretton Woods system. After a century of changes, the international monetary system still faces structural contradictions, and the emergence of cryptocurrencies is seen as a new driving force for the reform of the international monetary system. (I) The pressure of restructuring the international monetary system: the structural contradictions of dollar hegemony. The structural problems of the international monetary system are essentially still the "Triffin dilemma." Since the establishment of the Bretton Woods system, the dollar-dominated international monetary system has never been able to completely resolve its inherent structural contradictions, and the "Triffin dilemma" remains a prominent challenge.To meet global demand for international currencies, issuing countries must export currency through trade deficits. This results in these countries financing their deficits, leading to continuously increasing national debt, rising sovereign credit risk, and undermining global confidence in the stability of international currencies. Maintaining international monetary stability requires addressing external imbalances, but resolving these imbalances makes it difficult to meet global demand for international currency liquidity. The "Triffin dilemma" ultimately boils down to how to address the unsustainable external deficits of issuing countries in the context of ever-growing global demand for international currencies. Currently, the "Triffin dilemma" in the international monetary system is primarily manifested in the unsustainable debt problem caused by the external imbalances of the United States. The US dollar is the world's most important international currency. The US's long-term trade deficit exports a large amount of dollars to meet global demand for dollar liquidity, but this trade deficit has resulted in a sharp rise in US national debt. As of the end of August 2025, the US national debt had reached $37.3 trillion, exceeding 120% of GDP, surpassing levels seen during World War II. The world is highly concerned about the risks of US national debt, impacting confidence in the US dollar. Both the US dollar and US Treasury bonds are issued based on the credit of the United States. If US Treasury bonds encounter problems, it indicates an increase in US sovereign credit risk, which will inevitably affect the stability of the dollar-dominated international monetary system. If the US can adjust external imbalances, then the problems of the international monetary system may be alleviated. The US mainly uses exchange rate adjustments and fiscal and monetary policies to adjust its trade deficit; however, these methods are subject to constraints. Regarding exchange rate adjustments, the US dollar is the main international currency, and many countries use it as an important reference point for their sovereign currencies. A depreciation or appreciation of the dollar often induces other countries' currencies to adjust their exchange rates in tandem, making it difficult for the US to adjust external imbalances through exchange rates. In addition, high-end manufactured goods and high-tech services account for a large proportion of US exports, which are more affected by factors such as technical barriers and trade protectionism, and exchange rate fluctuations have a limited effect on promoting their exports. A large portion of US imports are necessities, and even if the dollar depreciates, the import volume is unlikely to decrease significantly. In terms of fiscal and monetary policy, domestic consumption is the main driver of economic growth in the United States. Tight fiscal and monetary policies will reduce domestic demand and lower imports, thereby improving the trade deficit. However, this will also suppress US economic growth, leading to increased unemployment and greater pressure for economic recession. The US lacks the incentive to implement such policies. The structural problems within the international monetary system are also difficult to resolve due to the lagging reform of the international financial governance system.Theoretically, the problems of the international monetary system must be solved jointly by all countries in the world. Currently, the United States faces enormous challenges in adjusting its external imbalances. If countries around the world can work together to promote the construction of a multi-currency system and change the situation where the US dollar dominates the international monetary system, then the structural problems of the international monetary system may be alleviated. However, the situation that the contemporary world finance is still dominated by the United States has not changed. As of the end of June 2025, the United States still holds 16.49% of the voting rights in the International Monetary Fund (IMF), and major IMF decisions require more than 85% of the voting rights to pass. The United States has veto power in major IMF decisions. At the same time, all the past presidents of the World Bank have been Americans. Contemporary international financial governance is dominated by American hegemony. Any decision that changes the status of the US dollar is obviously not in the interests of the United States, and the United States will not support or agree to it. (II) The driving force for the restructuring of the international monetary system: the innovative development of cryptocurrencies. In the wave of digital technology reshaping the financial system, cryptocurrencies have evolved from a marginal innovation into a key area of strategic competition among major powers. In June 2025, the U.S. House of Representatives passed the "Guidance and Establishment of a National Innovation for Stablecoins Act," requiring stablecoin issuers to have federal or state licenses and hold a 1:1 ratio of U.S. dollar cash, bank deposits, or short-term U.S. Treasury bonds as reserves, thus pegging stablecoins to the U.S. dollar and consolidating the dollar's position in the financial sector. In April 2023, the European Union released the "Crypto-Asset Market Regulation Act," establishing the world's first regionally unified cryptocurrency regulatory system. Cryptocurrencies are now considered a significant variable influencing the international monetary system. The rapid development of cryptocurrencies currently provides a new opportunity for the restructuring of the international monetary system. The advent of Bitcoin in 2009 opened the curtain on cryptocurrency development. As of July 25, 2025, the total market capitalization of the cryptocurrency market is close to $4 trillion, with Bitcoin's market capitalization reaching $2.36 trillion, accounting for about two-thirds of the total cryptocurrency market capitalization. Besides Bitcoin, Ethereum (ETH), Ripple (XRP), Solana (SOL), Dogecoin, and Cardano (ADA) have also experienced rapid growth in recent years. Currently, there are approximately 17,000 cryptocurrencies in the global market. If the scope is expanded to include cryptocurrency tokens, CoinMarketCap estimates there are close to 11 million. The rapid development of cryptocurrencies stems not only from the new financial formats spawned by digital finance, but also from their provision of new solutions to problems in the international monetary system. Cryptocurrencies are reshaping the operating mechanisms of the international monetary system.The current international monetary system is a sovereign credit currency system, with central banks of major countries and regions controlling currency issuance and establishing centralized clearing systems through banks and other financial institutions. Financial regulators oversee financial activities such as capital flows. However, the issuance of cryptocurrencies like Bitcoin is no longer limited to nations; non-governmental entities and even virtual online entities can issue cryptocurrencies. Cryptocurrency operation no longer follows existing financial rules and standards but is determined by code and community consensus. The International Monetary Fund and the World Bank theoretically cannot directly influence cryptocurrencies. Cryptocurrencies bypass existing financial infrastructure, significantly impacting financial regulatory mechanisms. The traditional international monetary system's operating mechanisms are clearly incompatible with cryptocurrencies, injecting significant momentum into the restructuring of the international monetary system's operating mechanisms. Cryptocurrencies reconstruct the imbalance adjustment mechanism of the international monetary system. The core of the "Triffin dilemma" of the international monetary system is the unsustainability of external imbalances, and cryptocurrencies objectively provide an important solution to these imbalances. Bitcoin and other cryptocurrencies are currencies based on internet platforms, transcending national borders and possessing characteristics of supranational currencies. If cryptocurrencies develop rapidly, the foreign exchange reserves of countries worldwide will be reflected in cryptocurrencies rather than a country's sovereign currency. International reserve currency issuers will no longer passively export currency to meet external liquidity needs, thus helping to avoid the continued expansion of external imbalances. Considering the current global reality, if cryptocurrencies become major currencies, the US will no longer need to provide dollar liquidity to the world through a persistent trade deficit. For other countries, there will be no need to increase exports to the US to obtain dollars, and the US's external imbalances can be gradually alleviated. II. Strategic Focus of Cryptocurrency Restructuring the International Monetary System: Balancing Centralization and Decentralization. Cryptocurrencies provide new impetus for the restructuring of the international monetary system. However, while cryptocurrencies bring development opportunities, they also bring new challenges. Most major countries in the world hold a cautious attitude towards cryptocurrencies, which necessitates a deeper understanding of the key difficulties and challenges in the reform and development of the international monetary system from the perspective of operational mechanisms. From the perspective of operational mechanisms, compared with traditional sovereign credit currencies, cryptocurrencies such as Bitcoin rely on blockchain technology to achieve decentralized operation, impacting the foundation of the traditional centralized monetary system. Currently, most regulatory systems in the world are centralized. If a new regulatory model adapted to decentralization cannot be promoted, cryptocurrencies may pose a significant challenge to national security.How to find a balance between centralization and decentralization, and how to understand the theoretical logic and practical issues of monetary centralization and decentralization, is not only related to the development of cryptocurrencies, but also a prominent aspect driving profound changes in the international monetary system. (I) The Decentralized Characteristics of Cryptocurrencies The decentralized characteristics of cryptocurrencies are rooted in the underlying architecture of blockchain technology. Modern society is an internet information society. The internet transcends national borders and lacks a centralized governance mechanism similar to a world government. It is necessary to rely on individuals on the internet to build a trust system. Blockchain provides an important solution for achieving this decentralized governance, namely, through the collective maintenance of distributed ledgers, the algorithmic autonomy of consensus mechanisms, and the hierarchical governance of node networks, a decentralized trust system can be built. The decentralization of cryptocurrencies is not simply "no center," but rather the decentralization of power through blockchain technology, with distributed nodes jointly maintaining network rules, rather than relying on a single institution. Cryptocurrencies based on blockchain technology possess the typical characteristics of decentralization, subverting the centralized model of traditional currencies, which are issued centrally by central banks and cleared through layers of commercial banks, releasing multiple innovative impacts in the context of international monetary system reform. Decentralized cryptocurrencies break the monopoly of sovereign states on currency issuance. In the current system, centralized sovereign credit currencies are typically issued and managed centrally by central banks. Central banks strictly control the amount of currency issued, its circulation, and transaction activities, dynamically adjusting the money supply based on economic changes. The public passively accepts the central bank's money supply. Decentralized cryptocurrencies like Bitcoin have a fixed total issuance amount predetermined by algorithms; for example, Bitcoin's total supply is fixed at 21 million coins, breaking the traditional model of centralized institutions like central banks monopolizing issuance and management. In Bitcoin and other cryptocurrency networks, there is no single central node controlling the entire system. Tens of thousands of mining nodes worldwide compete for computing power to participate in transaction verification and block generation, jointly maintaining ledger consistency according to pre-defined algorithmic rules. Transaction information is directly transmitted and confirmed among peer nodes without the need for third-party intermediaries. Decentralized cryptocurrencies offer inclusiveness and significant efficiency advantages. Due to factors such as bank processing, remittance channels, and international settlement systems, a traditional cross-border remittance takes approximately 3-5 business days from dispatch to arrival in the recipient's account, with transaction fees ranging from 1% to 3% of the transaction amount. Decentralized cryptocurrency transactions based on blockchain enable peer-to-peer clearing, significantly reducing the average cost of transfers and shortening settlement time to minutes.Decentralized cryptocurrencies enable financial transactions as long as there is internet access, allowing regions or groups lacking financial services to enjoy them and promoting the globalization of financial inclusion. World Bank data shows that 1.7 billion adults worldwide are still not covered by traditional financial services. Cryptocurrencies' barrier-free financial participation allows people to participate in financial activities through digital wallets with just a smartphone and internet connection, enabling functions such as transfers, savings, and loans, greatly improving financial inclusion. (II) Challenges of Decentralization Decentralized cryptocurrencies bring new challenges to financial regulation and governance. Under the existing framework, financial regulation relies on clearly defined responsible entities, centralized data tracking, and hierarchical enforcement systems. However, the anonymity, cross-border liquidity, and code autonomy of cryptocurrencies make it difficult for regulatory agencies to determine jurisdictional boundaries in real time, trace fund flows, and even effectively punish violations. Although some countries are building transaction traceability systems to regulate decentralized cryptocurrencies, this method is post-event traceability and is difficult to prevent risks beforehand. Even if traceability is possible, the lack of a joint regulatory system by world governments makes international coordination difficult, and non-official cryptocurrencies stored in other countries cannot be effectively controlled. Decentralized cryptocurrencies (Decentralized cryptocurrencies) clash with the centralized governance model of sovereign states, which is the underlying reason why governments struggle to effectively regulate them independently. Decentralized cryptocurrencies also pose new national security challenges. They provide new channels for illicit transactions such as drugs, firearms, and ammunition to circumvent regulations, creating new challenges to national security. A crucial element of these illicit transactions is monetary payment; decentralized cryptocurrencies bypass financial intermediaries for clearing and settlement, allowing offline transactions and online payments to occur simultaneously. Furthermore, terrorist organizations that threaten national security are typically subject to severe international sanctions, with restrictions on their financing and the freezing of their financial assets. However, terrorist organizations can create cryptocurrency financial communities through decentralized cryptocurrencies, preventing external entities from tracking their activities through financial transactions, making their actions more difficult to predict and objectively increasing national security uncertainty. Decentralized cryptocurrencies have already reached a scale sufficient to influence systemic risks.As of the first quarter of 2025, among the currency-denominated foreign exchange reserves, the euro's foreign exchange reserves amounted to US$2,334.6 billion, the pound's to US$603.7 billion, the yen's to US$599.1 billion, and the renminbi's to US$246.3 billion. However, Bitcoin's market capitalization has already exceeded US$2 trillion, making it the third largest international reserve currency after the US dollar and the euro. Moreover, cryptocurrencies are rapidly creating new financial forms, involving a wide range of fields such as online payments, asset custody, financial transactions, digital wallets, supply chain finance, and insurance. Unofficial cryptocurrencies are already sufficient to affect systemic risks in the global financial system. (III) Key to Reconstructing the International Monetary System: Balancing Centralization and Decentralization The decentralized nature of cryptocurrencies gives them the potential to reconstruct the international monetary system. However, decentralization challenges the mainstream model of centralized governance in contemporary global finance. How to balance the relationship between the two has become a key focus of international monetary system reform. From the perspective of financial stability, decentralized cryptocurrencies exhibit high volatility and high risk. Introducing centralized governance mechanisms can help reduce disorderly fluctuations in the cryptocurrency market and avoid systemic risks. From a financial efficiency perspective, a reasonable balance can leverage the dual advantages of centralization and decentralization, achieving complementary strengths. This optimizes the payment and settlement system, increases the speed of capital flow, and reduces transaction costs. From a financial innovation perspective, decentralization helps drive innovation in financial products and services, but centralized management of decentralized cryptocurrencies helps return to the fundamental principles of finance, focusing on serving the real economy. Centralized exchanges are an important practice in promoting a balance between centralization and decentralization, but they still face challenges. In recent years, the demand for cryptocurrency trading has been increasing. How to provide a more convenient platform for both buyers and sellers has become a crucial issue that needs to be addressed for cryptocurrency development. Against this backdrop, centralized exchanges such as Binance and Huobi have developed rapidly. Through the centralized governance platforms of these exchanges, trading methods and means have been continuously innovated, and order processing speeds have been significantly improved, enabling more and more people to access cryptocurrencies, demonstrating the importance of balancing centralization and decentralization. However, centralized exchanges also bring new problems, with security being a major concern.In 2014, Mt. Gox, then the world's largest Bitcoin exchange, suffered a massive theft of 850,000 Bitcoins due to mismanagement and technical vulnerabilities. This represented 7% of the circulating Bitcoin supply at the time, causing a sharp drop in Bitcoin prices and leaving many investors with nothing. This incident highlighted the significant risks associated with centralized exchanges' concentrated power and lack of effective regulation. Stablecoins are seen as a mainstream model balancing centralization and decentralization. Unlike fully decentralized cryptocurrencies like Bitcoin, stablecoins have entry requirements for issuing institutions. Institutions issuing stablecoins must be approved by the state, and while state management of these institutions is centralized, the operation of stablecoins is based on a decentralized blockchain model. State regulatory authorities oversee the collateral assets of issuing institutions to ensure that stablecoins are anchored to corresponding assets and prevent Ponzi schemes. The collateral assets of issuing institutions are primarily reserves of fiat currency or sovereign bonds. Currently, mainstream stablecoins include USDT and USDC, which account for over 80% of the global stablecoin market capitalization. Stablecoins not only reduce the circulation costs of traditional financial capital through decentralization, but also alleviate the price volatility of cryptocurrencies by pegging to sovereign currency assets, playing a key role in scenarios such as crypto trading and decentralized finance (DeFi). III. China's Cryptocurrency Solution in the Context of International Monetary System Restructuring: A Dual-Engine Approach Against the backdrop of the accelerated evolution of the global cryptocurrency landscape, China integrates into the global cryptocurrency ecosystem through stablecoin pilot programs, expands new space for cryptocurrency development through the digital yuan, balances centralization and decentralization, lays a solid foundation for China to seize the commanding heights of finance in the digital economy era, and takes the initiative in the financial game of the digital age. (I) Hong Kong Pilot Program: Connecting with the International Stablecoin Ecosystem and Establishing New Comprehensive Regulatory Rules for Stablecoins. In October 2022, the Hong Kong SAR Government issued the "Policy Declaration on the Development of Virtual Assets in Hong Kong," announcing its determination to compete as a global virtual asset center. In June 2023, the Hong Kong Securities and Futures Commission issued the "Guidance Applicable to Virtual Asset Trading Platform Operators," clarifying the standards and regulations applicable to licensed trading platforms, including the safe custody of assets, separation of customer assets, avoidance of conflicts of interest, and network security. In August 2025, Hong Kong will implement the Stablecoin Ordinance, the world's first comprehensive regulatory framework for fiat-denominated stablecoins, marking a significant milestone in global digital finance regulation. Following the implementation of the Stablecoin Ordinance, anyone issuing fiat-denominated stablecoins in Hong Kong or outside of Hong Kong in the course of their business must apply for a license from the Monetary Authority of Hong Kong.Hong Kong implements strict entry and ongoing supervision for stablecoin issuers. Stablecoins must be 100% backed by highly liquid assets (cash, short-term government bonds, etc.), disclose reserve composition daily, and submit audit reports weekly. Capital and reserve paid-in capital must be no less than HK$25 million, and sufficient net liquid assets must be maintained. Prior to issuing stablecoin issuer licenses, Hong Kong launched a stablecoin sandbox pilot program in March 2024. The first three institutions included in the sandbox were JD-Chain Technology, Yuanbi Technology, and a joint venture with Standard Chartered Bank. JD-Chain Technology issued the Hong Kong dollar stablecoin JD-HKD, focusing on cross-border payments and supply chain finance scenarios. It partnered with Airstar Bank for reserve custody and integrated with JD.com's Hong Kong and Macau retail payment testing platform. Yuanbi Technology launched the Hong Kong dollar stablecoin HKDR, focusing on international cooperation in cross-border payment business, with ZA Bank acting as the reserve custodian. The Standard Chartered Bank joint venture (Standard Chartered, Anxi Group, and HKT) issued the Hong Kong dollar stablecoin HKDG, with Standard Chartered responsible for fund custody, Anxi building smart contracts, and HKT providing payment access for cross-border trade settlement. Constructing a "regulatory sandbox + closed-loop funding" mechanism. Stablecoin transactions participating in the pilot program must be cleared through the Hong Kong Monetary Authority's digital asset cross-border flow monitoring platform. All fund transfers must form a closed-loop exchange between RMB and stablecoins, which avoids the impact of offshore stablecoins on the domestic monetary system and provides a new channel for cross-border trade settlement. Leveraging its location advantage as an international financial center, Hong Kong absorbs the technical experience and governance rules of the global stablecoin ecosystem, providing a practical model for China's participation in the formulation of international digital financial standards. The "domestic closed-loop + offshore interconnection" architecture ensures that international stablecoins can only circulate in controlled scenarios, avoiding challenges to monetary sovereignty. (II) Digital RMB: Independent Innovation of Cryptocurrencies Before the Hong Kong stablecoin pilot program, the research and application of digital RMB had already begun. As early as 2016, the People's Bank of China established the Digital Currency Research Institute to conduct special research on the issuance framework, key technologies, issuance and circulation environment, and relevant international experience. In 2018, the People's Bank of China formulated a digital RMB research and development framework as a basic guide for research and development work.In July 2021, the People's Bank of China's Digital RMB R&D Working Group released a white paper titled "Progress in the R&D of China's Digital RMB," which for the first time systematically disclosed the top-level design concept. Under a two-tier operating system, on the one hand, the central bank ensures its control over currency issuance and monetary policy through centralized management; on the other hand, it fully utilizes the existing resources, talent, and technological advantages of commercial institutions, using market-driven, competitive selection to disperse and mitigate risks and avoid financial disintermediation. As of the end of July 2024, the digital RMB app had cumulatively opened 180 million personal wallets, with a cumulative transaction amount of 7.3 trillion yuan in pilot areas (Chen Guojing, "Digital RMB Application Scenarios Are Becoming Richer," Economic Daily, April 3, 2025). The digital RMB adopts a "hybrid architecture," retaining the central bank's centralized issuance and regulatory authority while absorbing the distributed ledger advantages of blockchain, achieving efficient cross-institutional and cross-regional collaboration through the central bank's digital currency bridge. The application scenarios of the digital RMB are continuously expanding. From the perspective of serving fintech, the digital RMB, combined with existing financial products such as loans, discounts, and subsidies, provides more efficient support for financing innovative enterprises, allowing relevant funds to directly reach end-user enterprises, and focusing on reducing circulation costs and improving efficiency. From the perspective of serving green finance, the digital RMB, combined with blockchain technology, enables full-process traceability of data related to carbon emission reduction, realizing the connection between green production and life and the financial system. The digital RMB has been applied to multiple green and low-carbon scenarios such as public transportation, clean energy, circular economy, and environmental protection and energy conservation. From the perspective of serving inclusive finance and pension finance, the digital RMB organically combines functions such as digital government affairs, smart government affairs, and payroll processing with digital inclusive finance, ensuring the efficient circulation and safe operation of social security funds. The use of digital RMB in the pension and old-age assistance payment process ensures accurate fund distribution, transparent circulation, and secure management. (III) Dual-wheel drive: The Chinese solution to balance centralization and decentralization The Chinese solution provides a third path for the development of global cryptocurrencies. The United States dominates the cryptocurrency ecosystem with stablecoins such as USDC and USDT, the European Union emphasizes the construction of a strict regulatory framework, and China implements a dual-wheel drive development strategy for cryptocurrencies. The development pattern of cryptocurrencies is showing a three-way balance. The digital yuan focuses on exploring the centralized governance of cryptocurrencies, while the Hong Kong stablecoin pilot program explores the balance between centralization and decentralization. The two complement and promote each other, constructing a new solution for the development of cryptocurrencies in China in the digital finance era.The digital yuan is driving retail payments and government services, while Hong Kong's stablecoin is promoting cross-border trade, creating a dual-engine dynamic that safeguards monetary sovereignty while promoting digital financial innovation. The Chinese approach achieves a balance between efficiency and security in cryptocurrency. The US-led stablecoin ecosystem prioritizes market efficiency but lacks a corresponding regulatory system, raising concerns about potential systemic risks arising from decentralization. While the EU's strict regulatory model ensures security, it stifles innovation. China's "dual-engine" approach balances these two aspects, providing a new paradigm for global digital financial governance. The Hong Kong Monetary Authority controls cross-border stablecoin flows, while the digital yuan system monitors the final flow of funds. This avoids the suppression of innovation by centralized regulation while preventing disorderly expansion through decentralization, finding a dynamic balance between deregulation and regulation. The Chinese approach also achieves autonomy in cryptocurrency development. Currently, cryptocurrency development faces a dilemma: fully opening up restrictions could create systemic financial risks, while a complete ban would miss new opportunities in digital finance. China's dual-engine strategy adheres to independent innovation and controlled openness, embracing cryptocurrency innovation while maintaining financial security. The cross-chain monitoring and smart contract auditing technologies accumulated from Hong Kong's stablecoin pilot program provide valuable lessons for the development of the digital yuan's cross-border system. The digital yuan's hybrid architecture of "distributed ledger + centralized regulation" offers technical reference for Hong Kong's stablecoin regulation. Stablecoins and the digital yuan are not substitutes or competitors, but rather complementary, leveraging each other's strengths to achieve a balance between regulatory effectiveness and user privacy. In summary, the rapid development of cryptocurrencies like Bitcoin has provided new options for international monetary system reform, prompting countries worldwide to accelerate their cryptocurrency strategies. The Trump administration in the United States implemented a stablecoin strategy to maintain the dollar's hegemony. However, while cryptocurrencies, relying on blockchain technology, address the prominent challenges of centralized governance in the current international monetary system through their decentralized nature, decentralization faces new challenges to national security, such as regulatory evasion, terrorism, and money laundering. Major countries' cryptocurrency strategies focus on balancing centralization and decentralization. In response, China, leveraging Hong Kong's international financial center, is conducting stablecoin pilot programs while simultaneously implementing its digital yuan strategy, providing a Chinese solution for balancing centralization and decentralization and promoting the restructuring of the international monetary system.