The
potential policy shift, aimed at boosting the international use of the
nation's currency, would mark a significant reversal of Beijing's strict
2021 ban on all crypto-related activities.
BEIJING – The Chinese government is reportedly considering a plan to permit the use of Yuan-backed stablecoins in a strategic effort to promote the international adoption of its currency, according to sources familiar with the matter.
China's State Council,
the country's highest executive authority, is expected to present a
roadmap later this month outlining goals for the global use of the Yuan. This plan is said to include the potential use of stablecoins for business and commercial transactions.
The move would represent a major policy reversal for Beijing, which implemented a sweeping ban on all cryptocurrency trading and mining in 2021.
This potential pivot is widely seen as an attempt by China to challenge the dominance of the United States in the digital asset market. According to the Bank for International Settlements (BIS),
U.S. dollar-pegged stablecoins currently account for over 99% of the
global market. By introducing a regulated, Yuan-linked alternative,
China could begin to chip away at that market share and create a new
channel for its currency in global finance.
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