China, the country with the world’s strictest cryptocurrency regulations, signals easing pressure! Here are the details

China, one of the countries with the strictest cryptocurrency regulations in the world, is preparing for a surprising policy change.

China’s Yuan-Backed Stablecoin Move: Policy Change Imminent

According to a Reuters report citing sources familiar with the matter, the Chinese government is considering allowing yuan-backed stablecoins.

China’s State Council will review a roadmap aimed at increasing global use of the yuan at the end of August, according to sources.

This plan reportedly includes introducing yuan-backed stablecoins into international payment systems, in response to the US’s progress in the stablecoin space. If approved, this move would represent a fundamental shift in China’s long-held, hardline stance on cryptocurrencies.

As is well known, China completely banned cryptocurrency trading and mining in September 2021. However, reports in recent months indicate that the Beijing government has adopted a more moderate approach, particularly towards stablecoins.

In June, a senior official at the People’s Bank of China (PBOC) stated that stablecoins could play a transformative role in global payments systems. This statement fueled calls for their inclusion in regulatory frameworks.

Experts emphasize that China’s move could accelerate the internationalization of the yuan and also impact balances in global financial markets. The stablecoin initiative, along with Beijing’s digital yuan project, could become central to its financial strategy.

*This is not investment advice.