China Considers Launching Yuan Stablecoin

China is poised to make a dramatic U-turn on cryptocurrency policy by developing its own yuan-backed stablecoin. According to sources, the goal is to challenge the dominance of US-dollar stablecoins and increase the Chinese currency’s use in global trade.

This potential approval, coming just years after a nationwide crackdown on crypto, signals a new pragmatic approach from Beijing. The plan would see these government-sanctioned stablecoins used primarily for cross-border payments and settlements with other countries.

The reported strategy is part of a broader effort to counter US influence in the digital finance sector. A formal proposal is slated for review by China’s State Council in August, where officials will weigh the economic benefits against potential risks.