# China May Greenlight Yuan-Backed Stablecoins: Reuters

*Author: Bankless*
*Published: Aug 20, 2025*
*Source: https://www.bankless.com/read/china-may-greenlight-yuan-backed-stablecoins*

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China is considering allowing yuan-backed stablecoins to support global trade and payments, according to [Reuters](https://www.reuters.com/business/finance/china-considering-yuan-backed-stablecoins-boost-global-currency-usage-sources-2025-08-20/#:~:text=Aug%2020%20(Reuters)%20%2D%20China,its%20stance%20towards%20digital%20assets.). 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.