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China Eyes Yuan-Backed Stablecoins to Boost Currency Internationalization
China’s cabinet is reportedly reviewing a roadmap that would allow yuan-pegged stablecoins as part of a broader push to promote the international use of the renminbi, Reuters sources said. If adopted, the move would signal a substantial policy shift for a country long known for strict cryptocurrency controls.
What the proposal entails
According to the sources, the State Council could approve a plan later in August that includes regulatory steps to enable yuan-backed stablecoins and counter advances made by the US in the stablecoin space. The proposal aims to expand cross-border payments and strengthen the yuan’s role in global finance.
Context: from bans to cautious engagement
This reported shift would mark a reversal from Beijing’s 2021 crackdown, when crypto trading and mining were effectively outlawed. Still, authorities appear to be distinguishing between decentralized crypto markets and controlled, fiat-backed stablecoins that can be supervised and integrated into official payment rails.
PBOC signals and industry implications
In June, an official at the People’s Bank of China (PBOC) recognized the disruptive potential of technologies like stablecoins for global payments, intensifying calls for a regulatory framework for yuan-backed tokens. Market participants say authorization could accelerate yuan internationalization, reshape stablecoin regulation, and intensify competition with US dollar-pegged stablecoins in cross-border settlements.
For crypto investors, exchanges, and payment providers, any formal approval would trigger a wave of policy, compliance, and technical adjustments — and could become a pivotal moment in the global stablecoin landscape.
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