China Considers Yuan-Backed Stablecoins to Boost Global Use of Its Currency❕
China’s State Council is reportedly preparing to review—and potentially approve—a roadmap later this month that would authorize yuan-backed stablecoins for the first time, signaling a major shift in the country’s digital assets strategy . This initiative aims to promote wider international adoption of the yuan by offering digital tokens pegged to the currency.
Stablecoins, which are digital assets designed to maintain a stable value by being pegged to fiat currencies, currently remain dominated by U.S. dollar-backed versions—taking up over 99% of the global stablecoin supply . China’s strategy would involve the People’s Bank of China and focus on rolling out implementation in key hubs such as Hong Kong and Shanghai, including regulatory and risk management frameworks .
Officials are expected to bring this topic to the upcoming Shanghai Cooperation Organization summit in Tianjin, scheduled for August 31 to September 1 . Notably, tech giants JD.com and Ant Group have already been lobbying for offshore yuan-pegged stablecoins, citing benefits in trade finance efficiency and new revenue streams .
