China Unveils Stablecoin Strategy to Counter USD Dominance

Facing mounting pressure from the U.S. dollar’s global dominance, China is actively exploring stablecoins as a defensive measure. Driven by initiatives in Hong Kong and Japan, these efforts aim to bolster regional currency exchanges and facilitate cross-border transactions. Notably, Hong Kong regulators are pioneering yuan-backed stablecoin experiments, introducing controlled cross-border tokenization under the guidance of institutions like the People’s Bank of China. This strategy is seen as a proactive approach to mitigating potential dollar dominance in the Asia-Pacific region.