China Approves Yuan-Backed Stablecoins: Impact on Global Crypto Market

China is set to potentially approve yuan-backed stablecoins, a significant move with far-reaching implications for the global crypto market. This policy shift marks a departure from China’s previous ban on cryptocurrency trading and mining, as outlined in 2021. The State Council and People’s Bank of China are spearheading this initiative, aiming to internationalize the yuan while reducing reliance on US dollar-backed stablecoins. The potential approval is expected within this month. This move could significantly impact existing USD-dominated crypto trading pairs, potentially diminishing demand for USDT and USDC globally.