China has reportedly been planning to enable the usage of Yuan-backed stablecoins to scale the wider adoption of its currency at a global level.
This decision would come as a major reversal of the country’s stance towards digital assets.
Yuan going global
According to people familiar with the matter cited by Reuters, the State Council is set to review and perhaps approve a roadmap later in August 2025 for the increased usage of the currency worldwide, including closing the gap with the US’s push on stablecoins.
China’s plan is projected to include targets for usage of the currency in the global markets and underline the requirements and responsibilities of domestic regulators. Additionally, the roadmap will include guidelines for risk prevention. The same sources mention that the country’s senior leadership is expected to meet for a study session as early as the end of August, with them mostly focusing on Yuan internationalisation and stablecoins, which have witnessed substantial growth worldwide.
Furthermore, as part of the aforementioned meeting, senior leaders are likely to provide points of view to set the tone for stablecoins and define the limitations of their application and development in business. If approved, China’s proposal for the usage of stablecoins would mark a significant shift in the country’s approach towards digital assets. Previously, China prohibited cryptocurrency trading and mining in 2021 based on concerns about how these could affect the stability of the financial system.
China has historically been aspiring to have the Yuan achieve global currency status, similar to the USD and EUR, indicating the country’s position as the world’s second-largest economy. Yet, its tight capital controls and its annual trade surpluses have negatively affected that plan. According to market participants, those restrictions can also impact the development of stablecoins.
