China is considering allowing the use of yuan-backed stablecoins for the first time

According to Reuters, sources say China is considering allowing the use of yuan-backed stablecoins for the first time to strengthen the yuan's internationalization efforts. China's State Council will review and potentially approve a roadmap later this month to promote the yuan's global use, including keeping pace with the US push for stablecoins.

They said the plan is expected to include goals for the yuan's use in global markets and outline the responsibilities of domestic regulators, adding that the roadmap will also include risk prevention guidelines.

One source said China's top leaders are expected to hold a study session as early as the end of this month to focus on the internationalization of the yuan and stablecoins, two issues that are gaining increasing attention globally. At the meeting, top leaders are likely to deliver speeches setting the tone for stablecoins and clarifying the boundaries of their commercial application and development.

Sources say that against the backdrop of the growing influence of dollar-pegged cryptocurrencies in global finance, Beijing sees financial innovation, particularly stablecoins, as promising tools for the internationalization of the yuan.