China would consider allowing stablecoins leaning against the yuan. It would be a major reversal of its restrictive position in terms of crypto. According to Reuters, familiar sources of the file indicate that the Council of State will examine a roadmap later this month, which could open the way for the issue of Stablecoins directly linked to the Chinese Yuan.
In short
- China plans to approve stablecoins backed by Yuan, marking a reversal of its position since the ban on crypto in 2021, in order to strengthen the global use of its currency.
- The initiative aims to counter US domination, the stablecoins backed by the dollar representing almost 98 % of the $ 288 billion on the market.
- The roadmap for Stablecoins in Yuan emphasizes trade and cross -border payments, with Hong Kong and Shanghai designated as the main deployment centers.
China: from the ban on crypto to a strategic pivot
This development occurs almost four years after the ban on trading and crypto mining decreed in September 2021. Since then, Beijing has promoted its CBDC (the Digital Yuan), while the Stablecoins remained largely prohibited. Such a change of course would point out that the authorities now consider these assets as a tool expansion of the role of the yuan in global finance.
This initiative is also part of a context of increased rivalry with the United States, where stable-coated the dollar represent almost 98 % of a global market estimated at $ 288 billion. President Trump is committed to supporting American stablecoins as part of a broader strategy aimed at strengthening the global influence of the dollar, an orientation followed closely by Beijing.
Cross -border trade in the heart
According to sources, the Chinese roadmap emphasizes cross -border uses. A Stablecoin backed by Yuan could facilitate trade and payments with partner countries, particularly within the framework of the Shanghai Cooperation Organization (OCS). The subject should be addressed at the OCS summit, scheduled for Tianjin from August 31 to September 1.
Hong Kong and Shanghai were identified as priority poles for possible deployment. Hong Kong, in particular, has already established a regulatory framework for the Stablecoins on August 1, thus preparing the ground for better convergence with continental policy.
Challenge the dollar
The Yuan currently occupies sixth place in the coins used in world payments, with a share of 2.9 %, according to Swift. For comparison, the US dollar represents 47.2 %. If the gap remains considerable, Chinese officials believe that stablecoins could help reduce excessive dependence on a single sovereign currency, according to Pan Gongsheng, governor of the Popular Banque of China.
With this new interest in Beijing, the Stablecoins market could enter a new phase of geopolitical competition. Today dominated by tokens backed by the dollar, they could see an alternative linked to the Yuan, especially in Asia and among the business partners wishing to reduce their dependence on the greenback.
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