Recent reports suggest China may be considering a stablecoin pegged to the renminbi as part of its plan to internationalize the currency. However, experts caution that such a move is unlikely to see any domestic circulation. This comes amidst speculation surrounding China’s approach to stablecoins after Reuters reported on Wednesday regarding Beijing’s consideration of approving a yuan-backed stablecoin for greater internationalization and financial inclusion. This echoes similar Financial Times reports earlier this month. However, Chinese officials have yet to confirm whether they are indeed moving ahead with such a proposal. Even if China moves forward, analysts predict the stablecoin would likely circulate offshore instead of within its mainland borders. This is due to China’s strict capital control policies that restrict movement of currency within the country.