Yuan-Pegged Stablecoins On The Horizon As Beijing Rethinks Policy

Beijing is weighing a plan that could let yuan-backed stablecoins be used more widely outside China.

The move would be a clear shift from the 2021 crackdown on crypto trading and mining, and it would lay out targets, risk rules and which regulators must act.

The State Council is said to be set to review a roadmap later this month that maps those responsibilities and guardrails.

Yuan-Backed Stablecoins On Trial

According to a Reuters report, citing sources with knowledge of the matter, Beijing has disclosed that Hong Kong and Shanghai would be the first places to test any new rules.

Hong Kong’s stablecoin law came into force on August 1, and Shanghai is building an international operation center for the digital yuan.

Based on reports, senior leaders could hold a study session as early as the end of the month to make clear how far stablecoins may be used and where limits must be drawn.

People’s Bank of China advisor Huang Yiping has told local media that an offshore yuan stablecoin in Hong Kong is “a possibility,” according to sources.

China Weighs Yuan-Backed Stablecoins in Push for Global Currency Adoption China is considering allowing the use of yuan-backed stablecoins for the first time as part of efforts to expand the international role of its currency, according to people familiar with the matter. The… pic.twitter.com/Brwn7lGN6E

— CN Wire (@Sino_Market) August 20, 2025

Market Size And Global Stakes

According to the Bank for International Settlements, fiat-backed stablecoins tied to the US dollar now account for nearly all of the global supply.

Latest figures put the total market at about $245 billion today, and Standard Chartered projects it could reach $2 trillion by 2028.

Based on reports, the yuan’s share of global payments slipped to almost 3% in June, while the US dollar still holds 47% of the market, according to SWIFT.

US President Donald Trump has publicly backed stablecoins and is pressing for a regulatory framework in the US.

According to sources, details of the stablecoin rollout may be revealed in the coming weeks. Beijing could raise the topic with trading partners at the Shanghai Cooperation Organization Summit on Aug. 31–Sep. 1 in Tianjin, the sources said.

Meanwhile, market players warn that China’s strict capital controls and large trade surpluses would complicate any plan to make yuan stablecoins useful across borders.

Reports says those controls could limit how freely a yuan-linked token moves between countries.

The roadmap is expected to include risk-prevention measures and assign implementation duties to domestic bodies, including the PBOC.

Featured image from Henderson Land, chart from TradingView