China Plans Yuan-Backed Stablecoin to Challenge USD Influence

Facing the growing influence of USD-based stablecoins, China is considering launching a yuan-backed stablecoin as part of a strategy aimed at increasing renminbi usage in international trade. This move seeks to counter the dominance of the US dollar in global transactions and bolster China’s financial sovereignty. China’s State Council is spearheading this initiative, focusing on cross-border payments and leveraging hubs like Hong Kong and Shanghai for increased renminbi use in these transactions.