China Greenlights Launch Of Its First Crypto Stablecoin—Report

China is preparing to launch its first stablecoin as part of a broader strategy to internationalize the renminbi and challenge the dominance of the US dollar. Hong Kong has emerged as a testing ground for these initiatives, with recent legislation allowing licensed businesses to issue fiat-backed tokens. The Hong Kong Monetary Authority (HKMA) plans to issue a limited number of licenses starting next year.

Policymakers in Beijing are closely monitoring the rise of dollar-backed stablecoins, which have reshaped global payment systems. Central bank governor Pan Gongsheng acknowledged their transformative impact in a June speech. However, the Chinese government remains cautious, balancing its ambition to elevate the renminbi with concerns about capital flight and financial stability.