China Industrial Bank is accelerating its plans to create an AI-driven stablecoin as a response to the dominance of the U.S. dollar in the global financial system.
Yuan-Denominated Stablecoin Initiative
China Industrial Bank is initiating a project for a yuan-denominated stablecoin, which marks an important step in the country's digital transformation. This initiative aims to deepen international financial relations using the yuan.
Competition with the Dollar
This move poses a challenge to established dollar-backed stablecoins. The initiative aims to redefine digital finance structures, potentially leading to shifts in global financial balances.
Prospects for Yuan in the Global Arena
China had previously maintained a cautious stance on stablecoins, but the current policy reflects a strategic shift in response to evolving global financial dynamics. Experts suggest this could lead to enhanced yuan adoption in international markets.
According to Zhang Ming, Deputy Director of the National Finance and Development Laboratory, the new strategy includes expanding the digital yuan and experimenting with Chinese-backed stablecoins to strengthen the yuan's position in the global financial landscape.
