Digital Assets Race Intensifies as China's Cross-Border Solutions Gain Ground

The global competition for digital asset dominance is intensifying. China’s digital yuan has recorded 3.48 billion transactions through November 2025, signaling substantial market penetration. More compelling is the mBridge project’s performance: it has processed over $55.34 billion in cross-border settlements, with 95.3% executed using digital currencies—a striking endorsement of the technology’s practical utility.

These developments have captured the attention of policymakers and industry leaders alike. Faryar Shirzad, chief policy officer at a major U.S. exchange, has raised concerns about the strategic implications of restrictive stablecoin regulation in the United States. His argument centers on a simple premise: overly stringent rules risk ceding the U.S. competitive edge in the digital asset marketplace at a critical moment.

The Regulatory Dilemma

Shirzad’s position reflects a broader industry anxiety. If U.S. policymakers impose harsh stablecoin constraints while other nations advance their digital currency infrastructure—particularly China, with interest-bearing yuan features scheduled for 2026—the regulatory gap could translate into market share loss. The mBridge initiative demonstrates that alternatives are already functioning efficiently at scale, handling hundreds of billions in transactions.

Why This Matters

The real issue isn’t whether digital assets will play a role in global finance—the data suggests they already do. The question is whether the U.S. will shape that future or follow it. Balanced, innovation-friendly regulation could position American financial infrastructure at the center of the digital economy, while heavy-handed restrictions might push that leadership elsewhere.

Faryar Shirzad and like-minded voices in the industry are advocating for a middle path: clear stablecoin rules that protect consumers and maintain stability, without strangling the innovation that keeps the U.S. globally competitive.