China’s cabinet is reportedly considering the introduction of yuan-backed stablecoins as part of a strategy to enhance the internationalization of its currency. According to sources cited by Reuters, the State Council will review a roadmap later in August that includes plans to promote the global use of the yuan, potentially allowing these stablecoins for the first time. This indicates a significant shift in China's previously strict stance on cryptocurrencies, especially following its regulatory crackdown in September 2021. Reports suggest that China aims to counter the United States’ progress in the stablecoin sector, particularly in light of the U.S. developments in 2025. In June, an official from the People’s Bank of China recognized the transformative potential of emerging stablecoin technologies in global payment systems, fueling discussions about regulatory approval. This development reflects China's acknowledgment of the changing landscape surrounding cryptocurrency and its strategies to enhance economic influence through the yuan. Further details will emerge as the situation develops.

Source 🔗