China Eyes Yuan-Backed Stablecoins for Global Trade Push

China is reviewing plans to introduce yuan-backed stablecoins as part of its strategy to expand the currency's role in international trade and payments.

This marks Beijing's first consideration to allow regulated stablecoins, shifting from its previous focus solely on the central bank's digital yuan.

The proposal aims to compete with dollar-pegged tokens like USDT and USDC, which currently dominate the $279 billion stablecoin market.

Policymakers see potential in 24/7 settlement capabilities and low transaction costs that stablecoins offer for cross-border payments.