China Probes Yuan Stablecoin Pilot with SASAC and PBOC
China’s state agencies, including the Shanghai SASAC and the People’s Bank of China (PBOC), have begun research into yuan stablecoin development and pilot trials. SASAC director He Qing and PBOC Governor Pan Gongsheng emphasized exploring digital currencies and blockchain payments to enhance cross-border settlement. Leading fintech firms such as Ant Group and JD.com petitioned the PBOC to authorize a yuan-backed stablecoin to challenge US dollar–pegged rivals. Advisor Huang Yiping and policy experts propose piloting yuan stablecoin in the Shanghai Pilot Free Trade Zone and Hong Kong to navigate capital controls and collect data. Despite stringent regulation and supervisory complexities, China’s cautious shift suggests yuan stablecoin solutions could bolster renminbi internationalization and expand market liquidity.
Bullish
The launch of yuan stablecoin research and pilot programs by SASAC and the PBOC signals a strategic move toward renminbi internationalization and enhanced blockchain payments. In the short term, traders may see neutral to modestly positive sentiment as guidelines and trials roll out. Over the long term, the potential issuance of a regulated yuan stablecoin could expand liquidity, diversify stablecoin markets, and increase demand for on‐chain settlement in renminbi, underpinning a bullish outlook for related trading pairs.