Chinese academics are expressing serious alarm about the growing influence of US-backed stablecoins like USDT and USDC, which they view as a potential threat to China’s monetary autonomy. They argue that these digital assets bolster the global dominance of the US dollar and potentially undermine China’s ability to control its own currency. The concern is that as stablecoins gain traction, they could diminish the renminbi’s use both domestically and internationally. This rising alarm comes amidst a broader effort by China to develop its own digital currency, e‑CNY. Experts are urging for accelerated adoption of e‑CNY in major cities, along with the development of yuan-denominated stablecoins from Hong Kong to enhance international appeal and directly counter US dollar-based alternatives. This move reflects China’s strategic push to assert its monetary independence, challenge dollar hegemony, and gain greater control over its own financial future. China’s shift in digital currency strategy is moving from domestic trials to active global engagement, with the potential for an offshore yuan stablecoin to increase renminbi liquidity abroad and reshape the landscape of global finance. The debate highlights the critical importance of interoperability, regulatory alignment, and the future of digital asset policy across Asia and beyond.