China Considers Yuan-Backed Stablecoins in Major Policy Reversal
China is preparing to allow yuan-backed stablecoins for the first time, signaling a dramatic pivot in its cryptocurrency stance. This move aims to bolster the yuan's global influence and counter the dominance of dollar-pegged stablecoins.
The State Council will review the proposal later this month, with senior leaders expected to outline integration guidelines for trade and finance. The decision follows China's 2021 ban on cryptocurrency trading and mining, marking a strategic shift toward digital currency adoption.
Washington's entrenched position in the $275 billion stablecoin market has accelerated Beijing's push for alternatives. A high-level study session in August will focus specifically on the yuan's internationalization through stablecoins.
