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China is considering allowing yuan-backed stablecoins to support global trade and payments, according to Reuters. The move would mark a notable shift in Beijing’s digital asset approach, which has historically favored the central bank’s e-CNY project over private token issuance.
What’s the Scoop?
- Roadmap Under Review: China’s State Council is expected to review a blueprint this month that outlines expanding the yuan’s global role, with stablecoins included as a potential tool. The plan would set offshore usage targets and assign regulatory responsibilities.
- Competition Heats Up: The timing comes as the yuan’s share of global payments fell to 2.88% in June, far behind the dollar’s 47%. Meanwhile, the U.S. has embraced a stablecoin framework through the GENIUS Act.
- Policy Crosscurrents: Beijing has expanded e-CNY pilots and Hong Kong has pushed a licensing regime for fiat-backed stablecoins. Still, mainland regulators remain cautious, recently cracking down on stablecoin promotions.
