China Explores Yuan-Backed Stablecoin Launch Through State-Owned Firms

Chinese authorities have directed state-owned financial and digital service providers to study the feasibility of issuing a yuan-pegged stablecoin. The initiative, led by entities like Guotai Haitong and Shanghai Data Group, signals a potential shift in China's cryptocurrency stance.

The Shanghai State-owned Assets Supervision and Administration Commission recently emphasized the economic opportunities presented by blockchain technology. Cross-border transactions, supply chain finance, and asset tokenization were highlighted as key focus areas for state-owned enterprises.

This development follows China's broader push into digital currency innovation, despite maintaining strict cryptocurrency regulations. The potential stablecoin trial represents a strategic MOVE to modernize financial infrastructure while maintaining state control over monetary systems.