China Considers Allowing Yuan-Based Stablecoins

Reviewing the Roadmap for Yuan Internationalization

It has been reported that China is considering allowing yuan-based stablecoins. As countries such as the United States and Japan accelerate the institutionalization of stablecoins, it is interpreted that China is concerned that falling behind in this area could hinder the internationalization of the yuan.

On August 20 (local time), Reuters, citing multiple well-informed sources, reported that the State Council of China is expected to review a "yuan internationalization roadmap" by the end of this month, which includes measures to catch up with the United States' push for stablecoin policies, and that approval is likely.

A stablecoin is a virtual asset whose value is pegged to a specific asset to minimize price volatility.

According to sources, the roadmap will include targets for yuan usage in the global market, as well as obligations and responsibilities for domestic regulatory authorities such as the People's Bank of China regarding stablecoins, and guidelines for risk prevention.

According to the sources, the Chinese government views stablecoins as a useful tool to counter the growing influence of virtual assets linked to the US dollar in global finance and to promote the internationalization of the yuan. Additionally, one of the sources said that Chinese leadership is expected to hold a study session focusing on yuan internationalization and stablecoins as early as the end of this month.

The sources also said that at the Shanghai Cooperation Organization (SCO) summit to be held in Tianjin from August 31 to September 1, discussions are expected to take place on expanding the use of the yuan in cross-border payments, as well as on stablecoins.

Reuters pointed out that if China approves a yuan stablecoin, it would mark a significant shift in the authorities' approach to digital assets.

This content was produced with the assistance of AI translation services.