China, known for its strict cryptocurrency regulations, is considering the implementation of yuan-backed stablecoins, which may signify a turning point in the country's financial policy.
Overview of China's New Measures
According to a Reuters report, the Chinese government is developing a strategy that would allow for the use of yuan-backed stablecoins. This initiative is set to be reviewed by the State Council at the end of August.
Shift in Attitudes Towards Cryptocurrencies
China completely banned cryptocurrency trading and mining in September 2021. However, recent reports suggest a more lenient approach towards stablecoins from the government. In June, a senior official from the People's Bank of China stated that stablecoins could play a significant role in international payment systems.
Impact on International Financial Markets
Experts argue that China's potential shift to stablecoins could accelerate the internationalization of the yuan and influence the balance of power in global financial markets. This initiative, coupled with the digital yuan project, could become a central element of China's financial strategy.
China's policy change regarding stablecoins could indicate a new era in international finance and economic relations, providing additional momentum for the yuan on the global stage.
