OPINION

Commentary: Does China Actually Need Yuan Stablecoins?

Published: Jul. 25, 2025 8:31 p.m. GMT+8

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Recent discussions about a yuan-pegged stablecoin seem to have overlooked one point: although the transaction volume of U.S. dollar stablecoins is huge, more than 95% is used for trading crypto or virtual assets. Photo: AI generated

Stablecoins have become the talk of the town following the U.S. Senate’s passage of the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025) in June. The U.S.’ attempts to use stablecoins to consolidate the dominance of the dollar and strengthen its advantage as a reserve currency appear to further reinforce dollar hegemony and undermine the monetary sovereignty of weaker nations. This has made some in China anxious and prompted calls to develop a stablecoin pegged to the yuan.

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: Ling Huawei

Ling Huawei is the managing editor of Caixin Media and Caixin Weekly.