Overview

• Reuters reports the cabinet will later this month review and may approve a plan that includes guidance for yuan-linked stablecoins and targets for overseas usage.
• The proposal would assign implementation to domestic regulators, including the People’s Bank of China, and set risk-control rules.
• Hong Kong’s new stablecoin licensing regime, effective August 1, positions the city to host pilots, with Shanghai also designated as a rollout hub.
• Senior leaders are expected to hold a study session before the Shanghai Cooperation Organization summit in Tianjin, where expanding yuan use could be discussed.
• Dollar-pegged tokens account for roughly 98–99% of supply and China’s capital controls are cited as major hurdles to any offshore circulation of a yuan stablecoin.