Exclusive: According to sources, China is thinking of introducing stablecoins backed by the yuan to increase the use of currencies worldwide. Skip to main content

Israeli fire in Gaza killed Reuters journalist Hussam al-Masri.

As he lived in a tent and battled to provide for his family, Hussam al-Masri, a Reuters journalist killed by Israeli fire on Monday while running a live video feed at Gaza's Nasser Hospital, covered the suffering of civilians during the conflict. According to journalist colleagues, Masri, 49, was a seasoned cameraman who was well-liked by Gaza's close-knit community of reporters because of his upbeat demeanor in the most perilous circumstances. In the months before his death, he would say, "Tomorrow will be better," despite the fact that the Palestinian enclave was becoming increasingly desolate and hungry. That was the conclusion of his final discussion with Mohamed Salem, a senior Reuters visuals journalist who had collaborated with Masri in Rafah, in southern Gaza, last year and had known him since 2003. Salem, who left Gaza later in 2024 but stayed in daily contact with Masri until Monday morning, said he was a pleasure to work with because of his smiles and o...

Exclusive: According to sources, China is thinking of introducing stablecoins backed by the yuan to increase the use of currencies worldwide.

In a significant reversal of its position on digital assets, China is thinking of permitting the use of yuan-backed stablecoins for the first time in an effort to encourage broader adoption of its currency internationally, according to people familiar with the situation.
According to the sources, China's cabinet, the State Council, will examine and potentially approve a roadmap later this month for increased currency usage worldwide, which includes catching up with the United States' push on stablecoins.
They stated that the roadmap will also include guidelines for risk prevention and that the plan is anticipated to include targets for the use of the Chinese currency in international markets as well as the duties of domestic regulators.

According to one of the sources, the nation's top leaders are also anticipated to convene for a study session as early as the end of this month, with an emphasis on stablecoins and yuan internationalization, which are gaining traction globally.
According to the source, senior leaders will probably make statements during that meeting to establish the tone for stablecoins and outline the parameters of their use and advancement in the corporate world.
If accepted, China's plan to use stablecoins would represent a significant change in how it views digital assets. In 2021, the nation outlawed cryptocurrency mining and trading because of worries about the stability of the financial system.

As the second-largest economy in the world, China has long hoped that the yuan will become a global currency, comparable to the dollar or the euro. But that goal has been hampered by its strict capital controls and trillion-dollar yearly trade surpluses.
According to market participants, those limitations are probably going to be a major obstacle to the growth of stablecoins as well.
One kind of cryptocurrency that aims to keep its value steady is called a stablecoin. Crypto traders frequently use them to transfer money between tokens, and they are typically based on a fiat currency, like the US dollar.

According to payment platform SWIFT, the yuan's share of the global payment currency, which opens a new tab, dropped to 2.88% in June, the lowest level in two years. The US dollar, on the other hand, held a 47.19% market share.
Although some connect schemes allow capital to be deployed in some important offshore markets, like Hong Kong, China maintains strict capital controls to manage flows in and out of the country.
President Donald Trump of the United States is creating a regulatory framework that helps legitimize dollar-pegged cryptocurrencies and supported stablecoins just days after taking office in January.
Stablecoins have the potential to upend conventional daily money transfers and cross-border payment systems because of their underlying blockchain technology, which allows for instant, borderless, and low-cost fund transfers around the clock.

According to the sources, Beijing views financial innovation—more especially, stablecoins—as a promising instrument for yuan internationalization in light of the growing prominence of cryptocurrencies linked to the US dollar in international finance.
According to the sources, the plan's specifics will be revealed in the upcoming weeks, and Chinese regulators—including the People's Bank of China (PBOC), the country's central bank—will be tasked with implementing it.
Because they were not authorized to speak to the media, the sources refused to be identified.
Reuters's requests for comment were not immediately answered by the State Council Information Office (SCIO). It was not immediately possible to reach the PBOC for comment outside of regular business hours.


A LARGE CHANGE

According to the Bank for International Settlements, over 99% of the stablecoin supply worldwide is currently made up of stablecoins backed by the US dollar.
Similar measures are being taken in Japan, and South Korea has promised to permit businesses to introduce won-based stablecoins and build the required infrastructure.

The most recent push coincides with growing geopolitical tensions with Washington and the expansion of Chinese exporters' use of stablecoins backed by the dollar.
Beijing's most recent plans follow a Shanghai regulator's announcement last month that it had convened a meeting for local government representatives to discuss strategic approaches to digital currencies and stablecoins.
An offshore yuan stablecoin in Hong Kong is "a possibility," according to PBOC advisor Huang Yiping, who recently spoke with local media.

Separately, on August 1, Hong Kong's long-awaited stablecoin ordinance went into effect, making the Chinese-controlled region one of the first markets in the world to regulate stablecoin issuers backed by fiat.
An international operation center for the digital yuan is also being established in Shanghai, China's commercial center.
The sources state that Shanghai and Hong Kong will be the primary cities to expedite the latest plan's local implementation.
According to the sources, China is anticipated to talk about extending the use of yuan and potentially stablecoins for cross-border payments and trade with certain nations during the Shanghai Cooperation Organization (SCO) Summit, which will take place in Tianjin from August 31 to September 1.

According to cryptocurrency data provider CoinGecko, the global stablecoin market is currently small, valued at around $247 billion. But by 2028, Standard Chartered Bank predicts it might reach $2 trillion.


SOURCES: NEWS AGENCIES

Popular posts from this blog

In Trump's most recent business move, the US will acquire a 10% equity stake in Intel.

President Donald Trump announced Friday that the United States would acquire a 10% stake in Intel (INTC.O), opening a new tab under a deal with the financially troubled chipmaker that turns government grants into equity shares. This is the White House's most recent extraordinary intervention in corporate America. Following Trump's recent statement that Intel CEO Lip-Bu Tan should resign due to conflicts of interest, the agreement improves relations between the two men. It will guarantee that roughly $10 billion will be given to the chipmaker to build or expand factories in the United States. The deal calls for the U.S. to pay $8.9 billion, or $20.47 per share, for a 9.9% stake in Intel. This is roughly $4 less than Intel's closing share price of $24.80 on Friday. The $5.7 billion in unpaid grants from the Biden-era CHIPS Act and the $3.2 billion given to Intel for the Secure Enclave program—also given under Trump's predecessor, Democratic President Joe Biden—will b...
Read more

Steel and aluminum tariffs on appliances, railcars, EV parts raised by US.

On  Tuesday, the U.S. Commerce Department raised steel and aluminum tariffs on more than 400 products, including wind turbines, mobile cranes, appliances, bulldozers, railcars, motorcycles, marine engines, furniture, and hundreds more. The department added 407 product categories to the list of “derivative” steel and aluminum products covered by sectoral tariffs, which apply a 50% tariff on steel and aluminum content and the country rate on non-steel and non-aluminum content. In a research note, Evercore ISI estimated the move will raise the effective tariff rate by 1 percentage point for more than 400 product codes representing over $200 billion in imports last year. The department is also adding imported parts for automotive exhaust systems and electrical steel for electric vehicles, buses, air conditioners, refrigerators, freezers, and dryers to the new tariffs. The department was advised not to add the parts by foreign automakers, who said the U.S. cannot meet demand. Tesla crea...
Read more

UK-India Free Trade and Investment Agreement Signed in Modi's Presence.

The United Kingdom and India have signed a trade agreement aimed at reducing tariffs on goods ranging from textiles to whisky, cars, and spices, and to provide businesses with increased market access. Terming the agreement a "landmark moment" for both countries, Starmer hosted Indian Prime Minister Narendra Modi for talks at Chequers, the country estate northwest of London, where UK and Indian trade ministers Jonathan Reynolds and Piyush Goyal formally signed the trade agreement. In May, Starmer and Modi announced that they had reached a free trade agreement after three years of stop-start negotiations, with both sides rushing to seal an agreement in the wake of the tariff turmoil unleashed by United States President Donald Trump. The deal now has to be ratified by the UK Parliament. "This is not the extent or the limit of our collaboration with India," Starmer said. "We have unique bonds of history, of family, and of culture, and we want to strengthen our rela...
Read more