Catenaa, Friday, August 22, 2025-China is weighing the introduction of yuan-backed stablecoins as part of efforts to expand the currency’s role in global trade and payments, according to a Reuters report.
The State Council is expected to review a roadmap this month that includes exploring stablecoins tied to the yuan, assigning regulatory oversight, and setting targets for offshore usage.
If approved, the plan would mark a significant shift in Beijing’s digital asset stance, which has long prioritized the central bank’s digital yuan over privately issued tokens.
Officials see potential benefits in allowing regulated yuan-based stablecoins, which could offer low-cost, round-the-clock settlement for cross-border commerce.
Such tokens could provide an onchain alternative to dollar-pegged stablecoins like Tether’s USDT and Circle’s USDC, which currently dominate crypto capital flows.
Dollar-backed tokens account for $265 billion of the $279 billion stablecoin market, data show.
The move comes as the yuan’s share of global payments fell to 2.88% in June, its lowest in two years, compared with nearly 47% of the dollar, according to SWIFT.
Analysts say adopting stablecoins could help Beijing strengthen competitiveness as the United States advances its own framework under the GENIUS Act.
Hong Kong has been building a licensing system for fiat-backed stablecoins to attract issuers, while the People’s Bank of China has expanded its e-CNY pilot.
Policymakers remain cautious, however, citing risks of illicit finance and investor speculation tied to privately issued tokens.
