China May Approve Launch of Yuan Stablecoins
Date: 2025-08-21 Author: Henry Casey Categories: CRYPTO PAYMENTS, IN WORLD
The Chinese government intends to discuss a project at the end of August that involves the issuance and regulation of stablecoins backed by the yuan. According to Reuters sources, the initiative is connected with Beijing's intention to expand the international use of its currency and at the same time reduce the influence of the United States in the digital asset sector.
The development of the roadmap includes measures to reduce risks and establish uniform rules. Particular attention is planned to be paid to Hong Kong and Shanghai — these cities have been identified as key platforms for the introduction of new financial instruments. Regulators, including the People's Bank of China, will be tasked with the practical implementation of the initiative and overseeing its implementation.
The topic of yuan stablecoins is expected to be one of the central topics at the Shanghai Cooperation Organization summit, which will be held from August 31 to September 1 in Tianjin. Experts believe that the discussion will allow Beijing to outline its priorities in the development of cross-border payments and strengthen the position of the national currency in international settlements.
According to SWIFT's RMB Tracker, as of June 2025, the yuan was the sixth most used currency in global payments with a share of about 2.9%. In comparison, the US dollar retains a dominant position, controlling more than 47% of global turnover.
Against this background, the yuan will have to overcome serious barriers. Currently, almost the entire stablecoin market is controlled by tokens backed by the US dollar: their share is about 98% of the total capitalization of the segment, estimated at $281 billion. Thus, the Chinese financial authorities are faced with the task of competing with an already established system, where dollar assets occupy a virtually monopolistic position.
Notably, the Hong Kong Monetary Authority approved the final rules for regulating stablecoins back in July, and they came into effect on August 1. This step is seen as a preparatory measure for the possible launch of China's own digital currency initiatives.
Analysts note that the approval of yuan stablecoins could become a strategic tool for China to promote its currency in the international arena and reduce the dependence of the global financial system on the dollar. However, the success of the initiative will directly depend on the trust of market participants and the ability of regulators to ensure the transparency and sustainability of the new mechanism.
