China Eyes RMB-Backed Stablecoins to Crack $250T Cross-Border Payment Market
2025-07-17 20:07:06
Main Idea
Former Deputy Finance Minister Zhu Guangyao proposed incorporating yuan-backed stablecoins into China’s financial strategy to counter U.S. dominance in digital finance and enhance cross-border payment efficiency.
Key Points
1. Zhu Guangyao highlighted the risk of China falling behind in digital finance infrastructure without regulatory support for yuan-backed stablecoins.
2. Dollar-pegged stablecoins dominate global transactions, with $27.6 trillion in 2024 volumes, surpassing Visa and Mastercard.
3. Recent U.S. regulatory actions, such as the Lummis-Gillibrand Payment Act, reinforce the dollar's dominance in stablecoin frameworks.
4. Zhu suggested developing offshore and domestic CNY stablecoins to integrate with China’s monetary policies and reduce reliance on SWIFT and CHIPS.
5. A yuan-backed stablecoin could improve interoperability with partner nations' financial systems, particularly in regions with strong trade ties to China.
Description
Key Takeaways: Former Deputy Finance Minister Zhu Guangyao proposed integrating RMB-backed stablecoins into China’s national financial framework. He described dollar-backed stablecoins as a continuation of U.S. monetary dominance via digital channels. The proposal implies a gradual path to currency internationalization without loosening China’s capital controls. At a closed-door seminar hosted by the New Economists Think Tank, former Deputy Finance Minister Zhu Guangyao proposed incorporating yu...
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