China may release yuan–backed stablecoins as part of a broader financial push to increase the currency’s role in global trade. This marks a significant policy turnaround from 2021’s crypto ban, signaling a fresh embrace of fintech innovation. The State Council is studying a regulatory roadmap focusing on international rollout, especially via Hong Kong and Shanghai. With the yuan’s share in global stablecoin usage currently at 2.9% (versus the dollar’s 47.2%), this move could catalyze the yuan’s international footprint-particularly amid rising geopolitical tensions.
Why it matters: A yuan stablecoin could alter global trade flows, challenge dollar dominance, and usher in a new era of digital currency partnerships.