China weighs yuan-backed stablecoin to speed currency internationalization - report

[Shanghai downtown business buildings skyline and river]
dongfang zhao

China's cabinet is weighing approval of a stablecoin backed by the yuan as part of a broader effort to expand the currency's global use and bolster its role in international markets, according to a media report published Wednesday.

The State Council is set to assess and a plan and possibly approve it later in the month, Reuters reported, citing sources familiar with the matter.

The roadmap is set to lay out targets for boosting yuan use abroad, as well as assign roles to domestic regulators and spell out risk-control measures.

China's top leaders are slated to hold a study session later in August on yuan internationalization and stablecoins, where they are expected to outline guidance on the currency's role and set limits on its use in business, one of the sources told [https://www.reuters.com/business/finance/china-considering-yuan-backed-stablecoins-boost-global-currency-usage-sources-2025-08-20/] Reuters.

Stablecoins are digital tokens designed to keep a steady value by being tied to assets like the U.S. dollar, yuan, gold, etc.

If approved, China's stablecoin plan would represent a sharp policy shift on digital assets, coming after its 2021 ban on crypto trading and mining over financial stability risks.

MORE ON STABLECOINS

* USCoin: Has The 'Stablecoin Moment' Arrived? [https://seekingalpha.com/article/4796761-uscoin-usdc-has-the-stablecoin-moment-arrived]
* Japan set to launch first yen-pegged stablecoin this autumn [https://seekingalpha.com/news/4486862-japan-set-to-launch-first-yen-pegged-stablecoin-this-autumn]
* South Korea's FSS asks ETFs to cut Coinbase and MicroStrategy stocks - report [https://seekingalpha.com/news/4470407-south-koreas-fss-asks-etfs-to-cut-coinbase-and-microstrategy-stocks---report]
* Financial information for Tether USD [https://seekingalpha.com/symbol/USDT-USD/income-statement]
* Financial information for USCoin USD [https://seekingalpha.com/symbol/USDC-USD/income-statement]