China, one of the most restrictive global jurisdictions for cryptocurrencies, is reportedly considering allowing Chinese yuan-backed stablecoins in what would be a major policy reversal.
Chinese authorities may authorize the usage of yuan-backed stablecoins for the first time to promote global use of its currency, Reuters reported on Wednesday, citing sources familiar with the matter.
According to the sources, China’s State Council will review and potentially approve a roadmap later in August to expand global use of the yuan. The plan reportedly includes steps to counter the US progress on stablecoins.
If approved, China’s reported plan for stablecoin use would mark a major shift in its approach to crypto after the country banned crypto trading and mining in September 2021.
The news follows multiple reports suggesting that mainland China has been warming up to stablecoins amid the US stablecoin push in 2025.
In June, an official at China’s central bank, the People’s Bank of China (PBOC), acknowledged the transformative potential of emerging technologies like stablecoins in global payment systems, intensifying calls for regulatory approval of yuan-backed stablecoins.
This is a developing story, and further information will be added as it becomes available.
