After Reuters’ Exclusive Report on China’s Yuan-Backed Stablecoins

Chinese social media reactions reveal deep divisions over the potential policy shift regarding yuan-backed stablecoins, following Reuters’ exclusive report.

The Chinese government has neither confirmed nor denied the report, and it is unlikely to publicly address sensitive financial policy discussions. Public discourse is limited, with comments primarily found on X (formerly Twitter), accessed via VPNs due to the Great Firewall.

These reactions, while possibly only a fraction of the public opinion, provide insights into informed Chinese citizens’ views on the yuan stablecoin initiative.

Market Enthusiasm for Stablecoin

Users on Chinese social media have shown enthusiasm for the yuan stablecoin prospects. TingHu called the development “good news” for market conditions, suggesting it could provide “an additional clean money channel” for the Chinese populace.

> 记录：中国正考虑允许发行人民币稳定币用于全球结算，并可能会在本月获得国务院的审批。
> 好事～
> 对行情整体是好事，对国人也是好事，以后可能会多一道干净钱渠道。 https://t.co/ilU9GoCNqe pic.twitter.com/AZr9ItLJjd
> — TingHu♪ (@TingHu888) August 20, 2025

Similarly, analyst qinbafrank supported the initiative, noting that yuan-backed stablecoins would most likely be offshore initiatives due to Hong Kong’s substantial offshore yuan market scaling nearly 1 trillion. Optimistic commentators emphasized trade applications, particularly targeting countries in the Belt and Road Initiative and focusing on business-to-business scenarios as initially more feasible than consumer applications.

Geopolitical Competition and Challenges

Analyst KZG Crypto labeled the yuan stablecoin a competitor to the US dollar dominance, highlighting that dollar stablecoins currently hold “99% of the global market share.”

> “China this time is clearly trying to break this monopoly pattern.”

KZG praised China’s strategic pivot from its 2021 cryptocurrency ban, suggesting that the digital currency landscape was too significant for America to monopolize. They also referred to possible discussions at the Shanghai Cooperation Organization summit as a strategic move targeting allied nations.

However, WordMaya pointed out implementation challenges for yuan stablecoins amid capital controls, warning users about the necessity for identity verification when trading overseas public blockchains like Ethereum or Solana.

Andy O raised doubts regarding the practical impact of stablecoins, noting the yuan’s drop to a two-year low amid the dollar’s 47.19% market share, describing the potential effects of such stablecoins as “a drop in the bucket.” Meanwhile, Phyrex suggested that the term yuan stablecoins might actually pertain to the broader international usage of the digital yuan, questioning the necessity of creating separate systems when central bank digital currencies are already in existence.

Skepticism and Opposition Voices

User Zhijiangjinyu expressed skepticism about the tangible benefits yuan stablecoins would bring to the general populace. They cautioned that stablecoins might serve more as tools to address local government debt than to benefit the average citizen, alluding to risks of users having no recourse in case of failures. User analyses indicated a belief that the assets backing yuan stablecoins would involve local government financing vehicle bonds and undisclosed debts, casting potential users in a negative light as “leeks” to be harvested by adhering to government financial trends.

Zhao Tao contributed.

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