China Considers Yuan Stablecoins to Enhance Global Currency Presence
Beijing Considers Yuan Stablecoins to Boost Currency Reach
China's State Council is reviewing a roadmap for launching yuan-backed stablecoins, aimed at increasing the international use of the yuan. Key points include:
- The final plan will establish adoption targets and oversight responsibilities.
- Stablecoins will be discussed as tools for cross-border settlements in an upcoming study session on yuan internationalization.
- Beijing plans to promote yuan-based stablecoin settlements during the Shanghai Cooperation Organization summit.
- This initiative responds directly to the global expansion of US dollar stablecoins.
Trump-led Stablecoin Push in the US Intensifies Pressure on China
US dollar-pegged stablecoins dominate the market, holding over 99% of the $280 billion market as of August 2025. Highlights include:
- The GENIUS Act formalizes bank-issued stablecoins with full reserve backing.
- Analysts predict the dollar stablecoin market may reach $2 trillion by 2028, strengthening the dollar's global influence.
- US officials assert stablecoins will reinforce dollar dominance in finance, posing a significant challenge to China's ambitions.
- Despite launching the digital yuan, China struggles with adoption compared to private payment systems.
- The yuan represented only 2.88% of global payments in June, prompting interest in yuan-backed stablecoins as a solution.
Coinfutures Draws Traders Amid Rising Stablecoin Interest
With growing interest in stablecoins, derivatives platforms like Coinfutures are attracting traders. Key features include:
- Trading contracts for major digital assets without KYC checks or complex setups.
- The platform aims to engage a broader user base in high-volatility crypto markets.