US-backed stablecoins seen as global risk to renminbi sovereignty
China urged to fast-track e‑CNY and offshore yuan stablecoins
Policy shift reflects geopolitical struggle over digital money
Chinese economic experts, including voices in the China Economic Times, have expressed deep concern about the expansion of US-backed stablecoins like USDT and USDC. They argue these digital assets reinforce the global dominance of the US dollar, potentially undermining China’s monetary autonomy by creating a “digital dollar shadow system” The worry is that as these stablecoins gain traction, they could drain both domestic and international reliance on the renminbi.
Calls for Accelerated e‑CNY Rollout
Former Bank of China deputy governor Wang Yongli has spotlighted the urgency of this issue. In a June 3 advisory, he warned that the e‑CNY must outpace stablecoin efficiency or face marginalization . Wang also proposed launching a yuan-denominated stablecoin from Hong Kong to bolster offshore usage and international appeal—a move aimed at directly countering US dollar-backed alternatives.
Monetary Sovereignty in the Digital Age
These discussions occur amidst China’s broader strategy: rapid e‑CNY pilots in domestic cities, digital identity integration, and emerging cross-border frameworks like mBridge . The expanded focus on yuan-based digital tools reflects China’s strategic push to assert monetary independence and challenge dollar hegemony at a time when US-backed stablecoins are gaining global foothold.
NEW: Chinese academics warn stablecoins pose a threat to China's monetary sovereignty.
More in Asia Express this week pic.twitter.com/G21oPl7bDE
— Cointelegraph (@Cointelegraph) June 13, 2025
What This Means for Crypto and Policy
The debate signals a significant shift in China’s digital currency strategy—moving from domestic trials to proactive global engagement. An offshore yuan stablecoin could increase renminbi liquidity abroad and help reshape global finance. It also raises questions about interoperability with other CBDCs, regulatory alignment, and the future of digital asset policy in Asia and beyond.
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