In response to the rising influence of U.S. dollar-pegged cryptocurrencies, a Chinese Communist Party-backed publication called on China to accelerate its stablecoin development and expand the international currency status of the Chinese Yuan.
The report pointed out that these stablecoins have made significant strides in various sectors, such as serving as trading mediums on cryptocurrency exchanges, in decentralized finance, and in the developing world for wealth preservation, thereby solidifying the dollar’s international currency status.
The op-ed, originally published in Chinese, stressed that China should bolster its stablecoin development by increasing internet platform token usage, integrating China’s sovereign credit with global application scenarios for these tokens.
“With proper design and risk controls, this could significantly boost the renminbi’s [Yuan] international currency status while effectively countering challenges from dollar-pegged stablecoins.”
The report identified three main digital currency development directions: cryptocurrencies, stablecoins, and Central Bank Digital Currencies. It recommended a balanced approach, pursuing all three avenues concurrently for maximum benefit.
Notably, China has its own CBDC called “Digital renminbi,” or “digital RMB,” which acts as the legal tender.
Study Times is sponsored by the Party School of the Central Committee of the CCP.
Despite a ban on cryptocurrency trading and mining, China continues to dominate the Bitcoin network, controlling 55% of the global hash rate as of September 2024
Read Next:
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
To add Benzinga News as your preferred source on Google, click here.
