China eyes yuan-backed stablecoins
China is weighing the introduction of yuan-backed stablecoins to accelerate global adoption of its currency, in what would mark a major policy reversal on digital assets, Reuters has reported (20 August).
The State Council is expected to review a roadmap outlining usage targets, regulatory responsibilities, and risk protocols later this month.
Senior leadership will convene a study session to define strategic boundaries for stablecoin deployment, amid growing global momentum and US regulatory advances. The yuan’s global payment share fell to 2.88% in June, compared to the dollar’s 47.19%, according to Swift, Reuters said.
Hong Kong and Shanghai are set to pilot implementation, with Hong Kong’s stablecoin ordinance already in force. The initiative aligns with Beijing’s long-standing ambition to elevate the yuan’s international status, despite persistent capital controls.
Sources cited by Reuters suggest further details may emerge at the Shanghai Cooperation Organisation Summit in Tianjin, 31 Aug–1 Sep.