China is reportedly considering allowing the use of RMB stablecoins to promote the broader global adoption of the yuan, marking a significant shift in China's stance on digital assets.
On the 20th, foreign media cited sources as saying that the State Council of China will, later this month, review and possibly approve a roadmap for RMB internationalization, which includes catching up with the United States in the stablecoin sector.
The plan is expected to set targets for RMB usage in global markets and clarify the responsibilities of domestic regulatory agencies, while also including guidelines for risk prevention.
One source revealed that senior Chinese leaders are also likely to hold a special study meeting as soon as the end of this month, focusing on the internationalization of the yuan and the rising global trend of stablecoins. At the meeting, senior leaders may set the tone for stablecoins and define their boundaries in commercial applications and development.
If the RMB stablecoin plan is approved, it will mark a major turning point in China’s attitude toward digital assets. In 2021, China banned cryptocurrency trading and “mining” due to concerns about financial system stability.
The sources also said that Beijing sees financial innovation, especially stablecoins, as a powerful tool to promote the internationalization of the yuan as a response to the growing influence of dollar stablecoins in global finance.