China Considers Yuan-Backed Stablecoins in Policy Shift

Beijing is reevaluating its stance on cryptocurrency with plans to allow yuan-backed stablecoins for international use, marking a significant departure from its 2021 crackdown. The State Council is expected to review a regulatory roadmap this month, outlining targets, risk rules, and oversight responsibilities.

Hong Kong and Shanghai will serve as testing grounds for the new framework. Hong Kong's stablecoin legislation took effect on August 1, while Shanghai advances its digital yuan international hub. A high-level study session later this month will define usage boundaries and limitations.

People's Bank of China advisor Huang Yiping has hinted at the potential for an offshore yuan stablecoin in Hong Kong. This MOVE aligns with China's broader strategy to enhance the yuan's global adoption.