China’s cabinet, the State Council, is preparing to review a policy roadmap later this month that would authorise the issuance and use of yuan-backed stablecoins for the first time, according to people familiar with the matter. The plan forms part of a broader push to expand the currency’s international role and would mark a sharp departure from Beijing’s 2021 ban on cryptocurrency trading and mining.
Draft guidelines seen by the sources set targets for global yuan adoption, spell out risk-control measures and assign supervisory duties to the People’s Bank of China and other regulators. Hong Kong and Shanghai are expected to fast-track local implementation, leveraging the territory’s new stablecoin ordinance that took effect on 1 August. Beijing also intends to raise the issue of cross-border stablecoin use at the Shanghai Cooperation Organisation summit in Tianjin on 31 August–1 September.
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