Beijing, Aug 21 (V7N) — China is reportedly weighing the introduction of yuan‑backed stablecoins for the first time, aiming to elevate its currency’s international role. This proposed move marks a striking shift away from the country's previously strict digital asset restrictions.
 
According to sources, the State Council—the nation’s cabinet—may soon approve a roadmap that outlines key targets for global yuan usage. The plan is expected to specify regulatory responsibilities, enforcement mechanisms, and guidelines to mitigate financial risks.
 
As part of these developments, China’s senior leadership is slated to hold a study session by the end of the month, focusing on the internationalization of the yuan and the evolving role of stablecoins. Officials are expected to set clear parameters for their business applications and policy boundaries.
 
The possible approval of yuan‑backed stablecoins represents a marked transformation in China's stance toward digital assets. In 2021, the country banned cryptocurrency trading and mining to safeguard financial stability. If this proposal moves forward, it would signal China’s intent to leverage financial innovation to advance its global currency agenda.
 
Implementation is expected to focus initially on financial hubs like Hong Kong and Shanghai, aligning with broader efforts to enhance the yuan’s global footprint and compete with the long-dominant U.S. dollar in international finance.
 
Global insight: The initiative comes amid intensifying geopolitical and financial dynamics where U.S.-linked stablecoins dominate, and China seeks a viable digital alternative to propel its currency forward on the world stage.
 
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