China Aims to Weaken USD Dominance with Yuan-Backed Stablecoin

Beijing is planning to launch a yuan-backed stablecoin, aiming to challenge the US dollar’s dominance in the stablecoin market. The move comes amid China’s shift from skepticism toward cryptocurrencies and an increasing focus on using digital finance tools for geopolitical leverage. The country has identified the need to reduce reliance on the USD-dominated system and create a more balanced global financial landscape.