China Urged to Launch Yuan-Backed Alternatives as Stablecoins Fuel Dollar Dominance

Analysts sound the alarm: Stablecoins are accelerating dollarization in China—and Beijing needs a crypto counterpunch.

The Yuan's Uphill Battle

While China bans crypto trading, dollar-pegged stablecoins keep seeping through the Great Firewall. Tether's market cap now rivals small nations' GDP—and every USDT transaction erodes yuan sovereignty.

Digital Currency Arms Race

PBOC's digital yuan trials look increasingly reactive as crypto becomes the preferred vehicle for capital flight. 'They're fighting DeFi with bureaucracy,' quips a Hong Kong-based trader.

One solution? Beat them at their own game. A properly incentivized yuan stablecoin could reclaim territory—if regulators swallow their anti-crypto pride. After all, nothing undermines financial control like the free market.