China to Legalize Yuan-Pegged Stablecoins by 2025: Impact on Global Crypto Markets

China’s State Council is preparing to legalize yuan-pegged stablecoins by August 2025, a significant shift in its regulatory approach to cryptocurrencies following the 2021 ban. This move marks a strategic effort to counter US dollar dominance and enhance the internationalization of the Chinese currency (yuan). The potential impacts are expected to ripple across global cryptocurrency markets, influencing stablecoin dynamics and cross-border financial transactions. This landmark decision aligns with China’s ambition to establish a robust yuan-based digital economy.