The Chinese government is brewing a historic policy reversal: approving the issuance of a yuan stablecoin. From a complete ban on cryptocurrencies in 2021 to actively embracing them by 2025, this 180-degree policy shift directly challenges the dollar's 98% dominance in the global stablecoin market.
According to an exclusive report by Reuters, the State Council of China will review the roadmap for the yuan stablecoin at the end of August, with Hong Kong and Shanghai identified as pilot centers. Behind this shift is a high alert to the rapid penetration of dollar stablecoins in global trade, while also aiming to promote the internationalization of the yuan.
Currently, the dollar stablecoin has formed an absolute advantage in global trade due to its low cost and high efficiency. However, this has further squeezed the yuan's share in international payments. The launch of a yuan stablecoin will provide a powerful digital financial tool for the Belt and Road Initiative, effectively increasing the international usage of the yuan.
However, this shift comes with strict regulatory measures: initial issuers may be limited to large state-owned banks, primarily for cross-border trade settlement between enterprises, to control capital flight and risk spread. But excessive regulation may affect market acceptance, thereby weakening the competitiveness of the yuan stablecoin.
The United States is expected to closely monitor and even resist the development of the yuan stablecoin, potentially taking corresponding sanctions. This also means that the launch of the yuan stablecoin is not only an innovation in the financial sector but also a new round of game between China and the United States in the field of digital currencies.