China Considers Yuan-Backed Stablecoins in Major Policy Shift, According to Reuters
A significant move is taking shape in China’s financial and digital asset landscape. According to a recent Reuters report, Beijing is considering the launch of yuan-backed stablecoins, a step that could mark a major policy shift for the world’s second-largest economy.
This initiative would align with China’s long-term strategy to internationalize the yuan and expand its influence in global finance. While the country has been cautious and restrictive toward private cryptocurrencies, the introduction of a state-backed stablecoin could provide a controlled, regulated bridge between traditional finance and the digital economy.
Why It Matters
A yuan-backed stablecoin could strengthen the role of the RMB in global trade and cross-border settlements.
It may complement China’s ongoing development of the Digital Yuan (e-CNY), but with a broader scope aimed at international markets.
Analysts suggest this could be part of China’s strategy to reduce reliance on the US dollar in trade and settlement systems.
Global Implications
If implemented, yuan-backed stablecoins could challenge existing USD-pegged stablecoins like USDT and USDC, which dominate the market. This move could reshape the stablecoin ecosystem, adding competition and potentially accelerating regulatory responses worldwide.
China’s consideration of this policy highlights how geopolitics, finance, and blockchain innovation are increasingly intertwined.
Upvoted! Thank you for supporting witness @jswit.