China may soon approve yuan-backed stablecoins—a move that could reshape the balance of power in global finance. Reuters reports that the State Council will review the proposal later this month, signaling Beijing’s intention to push beyond its already advanced digital yuan (CBDC).
A Shortcut to Yuan Internationalization
For years, China has promoted the digital yuan at home and abroad. But adoption has been slower than expected in cross-border trade. Stablecoins could change that.
- Faster issuance.
- Easier integration with global crypto markets.
- Potential alignment with BRICS nations, which are seeking alternatives to the U.S. dollar.
One source told Reuters the stablecoin plan is part of China’s broader effort to internationalize the yuan.
Photo by Yigang Zhou on Unsplash
Critics vs. Supporters
Not everyone is convinced.
Robin Brooks of the Brookings Institution dismissed the idea as “ridiculous,” arguing that true currency dominance rests on the rule of law and property rights—not blockchain tokens.
Others see it differently.
Raphaël Bloch, co-founder of The Big Whale, noted that stablecoins enable efficient currency distribution and can even back government debt financing, since reserves are often tied to bonds.
Global Stablecoin Race
China is not alone.
- Japan is preparing to approve a yen stablecoin.
- South Korea is drafting a bill to stabilize the won.
- In the United States, President Trump ruled out a CBDC. Instead, Congress advanced a stablecoin regulatory bill to cement U.S. dominance in digital finance.
A Deutsche Bank strategist said this legislation could further strengthen the dollar’s role in global trade.
Market Impact Snapshot
- Dollar vs. Yuan: Stablecoins may become the next battlefield in the long duel between U.S. and Chinese monetary power.
- Liquidity Shifts: Expect growing competition for market share between USDT/USDC and new sovereign-backed coins.
- BRICS Strategy: Yuan stablecoins could accelerate de-dollarization in Asia, Africa, and beyond.
Hong Kong Spotlight: Bitcoin Asia 2025
This debate comes at the perfect time.
Next month, Bitcoin Asia 2025 lands in Hong Kong, bringing together policymakers, investors, and innovators to discuss the future of money in Asia. With China exploring yuan stablecoins, the event is likely to become a showcase for East-West financial rivalry.
🔮 The Takeaway:
Stablecoins are no longer just a crypto experiment. They are becoming geopolitical weapons. As China, the U.S., Japan, and Korea all stake claims, the question is straightforward: Whose money will the world trust?