According to Reuters, China, which has long banned cryptocurrency-related activities, is considering allowing stablecoins backed by the yuan for the first time to promote its global adoption. Reuters noted that this move marks a significant shift in China's stance on digital assets, showing its attempt to seek new breakthroughs in global financial competition.
China's Top Leadership May Set the Tone for Stablecoins
Sources revealed that the State Council is expected to review and possibly approve a roadmap this month aimed at promoting yuan adoption in global markets and catching up with the United States in the stablecoin field.
The plan is expected to clarify the application objectives of the yuan in global markets while outlining the responsibilities of regulatory bodies in mainland China. One source further indicated that China's top leadership may hold a research conference as early as the end of this month, focusing on discussing yuan internationalization and the increasingly prominent stablecoin issue globally. During this meeting, top leadership may set the development path for stablecoins and define their boundaries and scope in commercial applications.
Stablecoins Could Help Expand Yuan Adoption
Reuters cited SWIFT payment platform data showing that the yuan's share as a global payment currency dropped to 2.88% in June, reaching a two-year low. In contrast, the US dollar's market share reached 47.19%, highlighting the vast gap between the two in global financial markets.
Sources stated that against the backdrop of growing global financial influence of US-pegged cryptocurrencies, Beijing views stablecoins as an important financial innovation tool to promote yuan internationalization. However, the specific details of the plan are yet to be announced in the coming weeks, with Chinese regulatory bodies, including the People's Bank of China, to be assigned implementation tasks.
Additionally, sources revealed that China plans to discuss expanding yuan and potentially stablecoin applications in cross-border trade and payments with some countries during the Shanghai Cooperation Organization (SCO) summit in Tianjin from August 31 to September 1. If this policy shift is realized, it will mark a change in China's stance on digital assets and reflect how cryptocurrencies are advancing with unstoppable momentum under global financial trends.
