China, long known for its strict stance on cryptocurrencies, is reportedly weighing the introduction of yuan-backed stablecoins in what would be a major turnaround in policy.
According to Reuters, authorities are discussing a roadmap that could be approved later this month by the State Council, aiming to expand the global use of the yuan and counter the rapid rise of US-backed stablecoins. If given the green light, such tokens could be used in cross-border trade and payments, with Hong Kong and Shanghai named as early rollout hubs. The issue is also expected to be addressed at the Shanghai Cooperation Organization Summit on Aug. 31–Sept. 1 in Tianjin.
China’s move would align with its broader push to internationalize the yuan, which currently ranks sixth in global payments with around a 2.9% share, according to Swift. In June, People’s Bank of China Governor Pan Gongsheng stressed the need to reduce reliance on a single global currency and outlined plans for a digital yuan center in Shanghai.
The development comes as the US dollar dominates the stablecoin market, with nearly 98% of the sector’s $288 billion capitalization tied to dollar-backed tokens. With President Donald Trump pledging to further strengthen the dollar’s role through stablecoins, China appears keen to secure its own place in the evolving digital currency landscape.
Recent signals from Chinese officials, as well as the launch of a yuan-backed stablecoin by blockchain firm Conflux in July, suggest momentum is building for Beijing to take the leap. Neighboring Hong Kong has already introduced a regulatory framework for stablecoins as of Aug. 1, adding further weight to the shift.
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