China Could Greenlight Yuan-Backed Stablecoins
Beijing is reportedly considering yuan-backed stablecoins and could approve usage later this month. This could potentially be a landmark move for the digital currency market.
China’s State Council – the country’s cabinet that executes laws – will review and potentially approve the usage of yuan-backed stablecoins, according to a «Reuters» report citing unnamed sources. The move could happen as early as later this month, with Hong Kong and Shanghai earmarked as the main cities to fast-track local implementation.
If it happens, this would be a landmark decision for China, which banned cryptocurrency trading and mining in 2021.
The stablecoin market is experiencing strong regulatory tailwinds with the US recently passing the GENIUS Act and Hong Kong commencing its own related regime.
