China Considers Stablecoin Approval: Regulatory Discussions and Yuan-Backed Digital Currency

11 July, 2025, 08:30 PM

China is reportedly exploring the possibility of allowing stablecoins. According to Reuters, Shanghai regulatory authorities convened with local government officials to discuss response strategies to stablecoins and digital currencies. The meeting, hosted by the Shanghai State-owned Assets Supervision and Administration Commission (SASAC), addressed the demands from companies and experts to develop a Yuan-backed stablecoin. Discussions encompassed the opportunities and challenges presented by stablecoins, as well as potential policy proposals for digital currency development. He Qing, head of SASAC, stressed the importance of monitoring emerging technologies and intensifying research on digital currencies. Prior requests to the People's Bank of China from major players like Jingdong.com (JD.com) and Ant Group to permit the issuance of Yuan-backed stablecoins highlight the growing interest and potential within China's digital financial landscape. The move could significantly impact the global cryptocurrency market and China's financial technology sector. ```