China Bets on Its Own Yuan Stablecoins
Date: 2025-07-16 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
The Chinese authorities have officially instructed the State-Owned Assets Administration Commission (SASAC) to oversee the project to create stablecoins that will be pegged to the yuan exchange rate. State giants such as Guotai Haitong Securities and Shanghai Data Group have been selected as executors. These organizations will be engaged in the preparation and testing of the first version of the new financial instrument.
Officials emphasize that, unlike unstable cryptocurrencies, stablecoins can combine the flexibility of digital payments and the stability of traditional fiat money. In their opinion, this opens up new opportunities for optimizing cross-border payments.
One of the key objectives of the project is to reduce China's dependence on dollar stablecoins, such as USDT, which is currently the leader in the field of international transfers. Beijing wants to offer an alternative that can displace foreign digital currencies from the country's foreign economic activity.
Xiangcai Securities analyst Qiu Hua is confident that Chinese stablecoins will be in demand primarily in international trade in the near future. He predicts that in the future, the digital yuan may become an instrument of strategic competition with the United States in the financial sector.
It is not only the public sector that is interested in developing its own stablecoin. Earlier, JD.com, one of the leaders in the Chinese online trading market, announced its intention to launch its own digital asset. The company expects that the use of an internal stablecoin will allow it to abandon international payment systems like SWIFT and make transactions faster and cheaper.
According to experts, the launch of national stablecoins will help Chinese corporations reduce transaction costs and simplify settlements with foreign partners. In addition, the authorities see the digital yuan as a way to strengthen control over capital movements and increase the transparency of financial flows.
Observers note that the development of yuan stablecoins fits into China's broader strategy to promote its currency on the global stage. In the context of growing competition with the United States for financial influence, new technologies could become one of the key tools in the fight for leadership.
The project is currently at the stage of preparing pilot launches, but market participants already expect that, if successful, yuan stablecoins will quickly take up a significant share of the cross-border settlements market.
