China Endorses Offshore Yuan Stablecoins to Boost Global Trade

China is increasingly recognizing the strategic importance of stablecoins, particularly offshore yuan stablecoins, as a key element in its ambition to become a global financial powerhouse. The China International Capital Corporation (CICC) has endorsed offshore yuan stablecoins for their potential to facilitate international transactions and investment flows, prioritizing global integration over domestic digital currency models like the digital yuan. This shift is partly driven by growing pressure from U.S. policy, especially following President Donald Trump's signing of the GENIUS Act, which provides regulatory clarity and promotes the role of fiat-backed stablecoins in the global financial system. Chinese authorities, historically skeptical of private digital currencies, are now accelerating their stablecoin agenda to counterbalance the U.S. dollar's dominance in Asia's financial infrastructure. Industry experts note that while China may not change its stance on cryptocurrencies broadly, it is closely monitoring stablecoin regulations in the U.S. and Hong Kong due to their potential to reshape cross-border capital flows. The evolving global stablecoin landscape is prompting China to act more swiftly, recognizing stablecoins as a pragmatic tool for future global financial influence.