Catenaa, Friday, July 18, 2025-China is weighing the launch of yuan-backed stablecoins as a strategic response to the growing dominance of US dollar-pegged digital assets in global cross-border payments, according to a senior former official.
Former Deputy Finance Minister Zhu Guangyao proposed integrating RMB stablecoins into China’s national financial strategy during a private forum held by the New Economists Think Tank.
He framed dollar-backed stablecoins as a new phase of American monetary influence, describing them as a “third Bretton Woods system.”
Zhu said stablecoins now process more volume than Visa or Mastercard, with 2024 transactions totaling $27.6 trillion.
Cross-border payments surpassed $250 trillion, nearly half settled in US dollars. He warned that recent US legislation, such as the Lummis–Gillibrand Act, consolidates dollar-based stablecoin regulation, reinforcing American liquidity control.
In contrast, Zhu proposed three steps for China: use Hong Kong as a sandbox for stablecoin regulation, develop both offshore and domestic RMB-backed stablecoins, and monitor how US rules affect foreign issuers.
The yuan stablecoins, he argued, could help internationalize the currency without loosening capital controls. If designed to comply with international reserve and audit standards, they may offer alternatives to the SWIFT and CHIPS networks, especially in regions tied to China through trade and the Belt and Road Initiative.
The proposal signals China’s intent to challenge US monetary supremacy by embedding digital assets into its financial policy toolkit.
