Archive · 21 Aug 2025
China Considers Yuan-Backed Stablecoins for Global Currency Push
China is exploring the use of digital money, called yuan-backed stablecoins, to get more people around the world to use their currency, the yuan, like the US dollar.
Stablecoins are digital currencies that are linked to a specific currency such as the US dollar.
The plan includes setting goals for how much the yuan will be used internationally and assigning duties to Chinese financial regulators.
China's currency is not easily exchanged in global markets.
Hong Kong is a key place for trying out these financial changes.
This is a part of China’s strategy to increase its currency's importance in global trade and finance.
China is considering allowing yuan-backed stablecoins to increase global yuan adoption.
The plan is expected to include targets for yuan usage in global markets and outline domestic regulator responsibilities.
Stablecoins are digital currencies whose value is linked to a specific currency, like the US dollar.
Hong Kong enacted a stablecoin law on August 1.
As of June, the yuan was the sixth most active currency for global payments with a share of 2.88%.
- Who
- China.
- What
- China is considering allowing yuan-backed stablecoins.
- When
- The plan is expected to be unveiled in the coming weeks.
- Where
- Hong Kong will be a key location for implementation.
- Why
- To boost the global use of the yuan.
China's Perspective
Global Financial System
Stablecoins and Risk
China's Perspective
View digital currency as a way to internationalize the yuan.
Global Financial System
Concerned about potential risks of stablecoins.
- Yuan's Global Payment Share (June)
- 2.88%
- US Dollar Market Share (June)
- Over 47%
- Year of Crypto Ban
- 2021
- e-CNY launch
- 2019
