Stablecoin News – Shanghai’s State-owned Assets Supervision and Administration Commission held a meeting to discuss strategic responses to stablecoins, focusing on developing a yuan-pegged stablecoin to challenge U.S. dollar dominance in the $253 billion market, as reported.
This marks a significant shift in China, where crypto trading is banned, but state-sponsored media have called for yuan-based stablecoins to enhance monetary sovereignty.
The meeting featured a policy expert from Guotai Haitong Securities, who analyzed global stablecoin frameworks, drawing inspiration from Hong Kong’s May 2025 Stablecoin Ordinance. China’s interest stems from concerns over dollar-backed stablecoins like USDT and USDC, which hold 83% of the market and could undermine local currencies, per the Bank for International Settlements.
A yuan-pegged stablecoin could bolster China’s digital currency leadership, complementing its CBDC pilot, one of 49 globally tracked by the Atlantic Council.
The initiative faces challenges, including China’s crypto ban and technical concerns about blockchain-based stablecoins, as noted by the BIS.
However, Hong Kong’s success, with $1 billion in stablecoin issuance, provides a blueprint. A yuan stablecoin could facilitate cross-border payments, reducing reliance on SWIFT and enhancing China’s global financial influence.
Global competition is intensifying, with the U.S. advancing the GENIUS Act and the EU enforcing MiCA. China’s move could reshape stablecoin dynamics, but regulatory and technical hurdles must be addressed to compete with established players like Tether and Circle.
