"Will China Launch Its First Renminbi Stablecoin?"

Source: KZG crypoto
The Chinese government is brewing a historic policy reversal: approving the issuance of a renminbi stablecoin. From a complete ban on cryptocurrencies in 2021 to preparing to actively embrace them by 2025, this 180-degree policy shift directly challenges the dollar's 98% dominance in the global stablecoin market.
According to an exclusive report by Reuters, the State Council of China will review the roadmap for the renminbi stablecoin at the end of August, with Hong Kong and Shanghai designated as pilot centers. This shift is driven by a heightened awareness of the rapid penetration of US dollar stablecoins in global trade, and it also aims to promote the internationalization of the renminbi.
Currently, the US dollar stablecoin has formed an absolute advantage in global trade due to its low cost and high efficiency. However, this has further squeezed the share of the Chinese yuan in international payments. The launch of the Chinese yuan stablecoin will provide a powerful digital financial tool for the "Belt and Road" initiative, effectively enhancing the international usage of the Chinese yuan.
However, this shift is accompanied by strict regulatory measures: the initial issuing entities may be limited to large state-owned banks, primarily for cross-border trade settlement between enterprises, to control capital outflow and risk spread. However, excessive regulation may affect market acceptance, thereby weakening the competitiveness of the renminbi stablecoin.
The U.S. is expected to closely monitor and even resist the development of the renminbi stablecoin, potentially taking corresponding sanctions. This also means that the launch of the renminbi stablecoin is not only an innovation in the financial sector but also a new round of competition between China and the United States in the digital currency field.