China is considering the launch of a yuan-based stablecoin as the first step to promoting its currency on the international stage.
Plan for Yuan Stablecoin Launch
The State Council of China is expected to approve a plan aimed at competing with the dominance of the US dollar by the end of August. If the initiative is approved, it would mark a stark contrast to the country's previous stance against digital assets. China had banned both cryptocurrencies and their mining in 2021, citing financial risks.
Yuan's Position in Global Payments
According to SWIFT data, the yuan's share in global payments fell to 2.88% in June, its lowest in two years, while the US dollar accounted for 47.19%. Support for the dollar from former US President Donald Trump and regulatory measures aimed at legitimizing cryptocurrencies have contributed to this situation.
Discussion at SCO Summit
The new developments will be discussed at the upcoming SCO summit in Tianjin, scheduled for August 31 to September 1, 2025. Leaders from other member countries, including India and Pakistan, will participate in these discussions.
The launch of a yuan-based stablecoin could be a key step in expanding the influence of the Chinese currency on the international stage, especially in light of current economic trends.
