Beijing’s Big Move: Yuan-Backed Stablecoins on the Table to Boost the RMB

Reports say China is studying a roadmap that would allow yuan-pegged stablecoins under strict regulation. The State Council may set targets, assign roles to the PBOC and other regulators, and pilot tokenised-RMB projects in hubs such as Shanghai and Hong Kong. The aim: make cross-border trade and payments cheaper and boost the renminbi’s global use—offering an alternative to dollar-centred rails.

What it would do

Permit regulated yuan stablecoins for cross-border settlement.

Create rulebooks for issuers, KYC/AML, liquidity and oversight.

Kick off controlled pilots before any wider rollout.

Why it matters

Dollar-pegged stablecoins dominate global tokenised fiat. A sanctioned yuan stablecoin would be a strategic push to internationalise the RMB, reduce FX friction with trading partners, and deepen regional fintech links.

Big hurdles

Capital controls, on-/offshore legal gaps, AML checks and the sheer depth of dollar liquidity mean rollout will be cautious and slow.

Caveat

These are unnamed-source reports; no official State Council or PBOC confirmation yet. Expect incremental pilots, heavy supervision, and a guarded approach.

Bottom line

If approved, regulated yuan stablecoins would be a long-term, strategic step toward broader RMB settlement—important for Asia’s payments architecture, but not an overnight replacement for the dollar.

Source: Economic Times (Reuters).

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