Don’t expect China’s stablecoin to touch the mainland
China’s split renminbi system suggests a rumored yuan stablecoin won’t mark a crypto shift.
The cryptocurrency industry is abuzz with speculation after recent reports suggested China may soften its stance on a yuan-backed stablecoin, but law experts caution against overinterpreting the news.
Reuters reported Wednesday that Beijing is considering approving a stablecoin pegged to the renminbi as part of a roadmap to boost the currency’s internationalization. It was the second report this month, following a similar Financial Times story on Aug. 5. Despite the news, Chinese officials have yet to confirm whether it’s considering a stablecoin push.
Even if Chinese authorities move ahead, analysts stress that such a stablecoin would almost certainly circulate offshore, not in the mainland.