According to (Reuters) reports, China is considering allowing the issuance of 'renminbi stablecoins' for the first time to accelerate the internationalization of the renminbi and promote its widespread use in global trade and payments. This will be a significant turning point in China's digital asset policy since it banned cryptocurrency trading and mining in 2021.
(Reuters) quoted informed sources as saying that the State Council of China is expected to review and possibly approve a 'roadmap to promote the internationalization of the renminbi' by the end of the month, covering goals for enhancing the use of the renminbi in global markets, the division of responsibilities among regulatory agencies, and corresponding risk prevention guidelines.
Insiders stated that China's top leaders are also expected to hold a special study meeting at the end of this month, focusing on the 'internationalization of the renminbi' and 'stablecoins.' During this meeting, senior leaders may give speeches to set the tone for the commercial applications and development direction of stablecoins.
Insiders mentioned that against the backdrop of the growing influence of US dollar stablecoins, Beijing views 'financial innovation,' especially 'stablecoins,' as an opportunity to promote the internationalization of the renminbi.
It is pointed out that relevant details are expected to be announced within weeks, and the People's Bank of China (PBOC) and other agencies will be assigned specific responsibilities, with Hong Kong and Shanghai named as the pilot implementation sites.
Just last month, Shanghai's financial regulatory authorities held a meeting with local officials to discuss strategies for addressing stablecoins and digital currencies. Recently, PBOC advisor Huang Yiping stated in an interview that issuing an 'offshore renminbi stablecoin' in Hong Kong is not impossible in the future.
It is noteworthy that Hong Kong's (Stablecoin Regulations) officially took effect on August 1, becoming the first market in the world to establish regulatory norms for stablecoin issuers, which also gives Beijing's strategic blueprint more operational space.
If the renminbi stablecoin is officially launched, it will be a significant adjustment in China's cryptocurrency policy. In 2021, Beijing completely banned cryptocurrency trading and mining under the pretext of 'maintaining the stability of the financial system'; now, however, it intends to embrace digital asset tools, reflecting the pressures and challenges of the international financial landscape.
For a long time, China has hoped that the renminbi could stand alongside the US dollar and euro as a major global reserve and payment currency. However, strict capital controls and annual trade surpluses in the trillions of dollars have always been stumbling blocks to achieving internationalization. Market observers point out that these restrictions may similarly hinder the development of a renminbi stablecoin.
What makes matters worse is that the status of the renminbi in the global payment market continues to decline. According to SWIFT statistics, the share of international payments in renminbi fell to 2.88% in June this year, hitting a two-year low, which is a stark contrast to the nearly 47% overwhelming share of the US dollar.
At the same time, the United States has taken the lead in making a crucial move. The Trump administration promoted the passage of the (GENIUS Act), establishing a regulatory framework for stablecoins, which also puts greater pressure on China.
"China considers launching a 'renminbi stablecoin'! Review expected by the end of the month, with Hong Kong and Shanghai leading the way" was first published in (Blockchain客).