Voices are growing within China that the country should actively adopt stablecoins as an international payment method. This is interpreted as a counterstrategy to the United States' efforts to strengthen global dollar dominance by utilizing digital asset technology.
According to Bloomberg, recent Chinese economists and policy advisors argue that the Chinese government should develop a cross-border payment system using stablecoins. Stablecoins are digital assets pegged to the value of traditional fiat currencies like the dollar, and the United States is currently promoting the 'digitalization of the dollar' in global payment infrastructure through these assets.
The People's Bank of China (PBoC) still prohibits cryptocurrency trading and mining. It has not yet introduced an official regulatory framework for stablecoins. However, after a high-ranking PBoC official recently mentioned that "stablecoins can play an important role in international finance," discussions on the topic have been ignited.
Experts are concerned that the United States is strengthening its dollar payment advantage in cross-border transactions by leveraging its stablecoin issuers. Warnings suggest that if China does not respond to these moves, it may gradually find itself in an unfavorable position in global trade and capital movement.
Within China, voices advocating for the rapid development of yuan-based stablecoins and expansion of national payment networks are gaining momentum. Meanwhile, some conservative policymakers continue to maintain a cautious stance, citing potential financial risks posed by stablecoins.
Separate from the global expansion strategy of digital yuan (CBDC), whether China will opt for private stablecoins is expected to be a key variable in future Chinese financial policy.
