China Plans to Lift Crypto Ban and Promote Yuan-Backed Stablecoins

China is considering lifting its decade-long crypto ban and promoting yuan-backed stablecoins. Reports indicate the State Council may approve a roadmap later this month aimed at increasing the global use of the yuan.

The plan includes expanding the role of domestic regulators and establishing clear risk management guidelines.
A study session by China's leadership will discuss yuan globalization and stablecoin influence.
Senior officials will outline policy directions for stablecoins, defining their application and development.
Officials from China’s central bank have urged increased stablecoin use in response to U.S. advancements.

If approved, this would mark a significant shift from China’s 2021 ban on cryptocurrency trading and mining due to financial stability concerns. The yuan's share of global payments has decreased to 2.88%, while the U.S. dollar remains dominant at 47.19%. Strict capital controls hinder progress towards yuan internationalization.

Beijing views stablecoins as a strategic tool against the rising influence of U.S. dollar-linked cryptocurrencies.