{"id":48741,"date":"2025-08-22T17:45:38","date_gmt":"2025-08-22T14:45:38","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=48741"},"modified":"2025-08-22T16:52:36","modified_gmt":"2025-08-22T13:52:36","slug":"chinas-stablecoin-move-can-it-challenge-dollar-dominance","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/chinas-stablecoin-move-can-it-challenge-dollar-dominance\/","title":{"rendered":"China\u2019s Stablecoin Move: Can It Challenge Dollar Dominance?"},"content":{"rendered":"<p data-start=\"156\" data-end=\"544\"><a href=\"https:\/\/coinengineer.net\/blog\/major-move-from-china-entry-into-global-markets-with-yuan-backed-stablecoins\/\"><strong>China<\/strong> <\/a>is reportedly considering launching a <strong data-start=\"200\" data-end=\"226\">yuan-backed stablecoin<\/strong>, with an initial rollout expected in Hong Kong and Shanghai. This marks a surprising shift, as Beijing has spent years cracking down on crypto while promoting its <strong>central bank digital currency (CBDC),<\/strong> the digital yuan. If realized, this stablecoin initiative could open a new chapter in the global financial system.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coinengineer.net\/blog\/chinas-stablecoin-move-can-it-challenge-dollar-dominance\/#China_Enters_the_Stablecoin_Race\" title=\"China Enters the Stablecoin Race\">China Enters the Stablecoin Race<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coinengineer.net\/blog\/chinas-stablecoin-move-can-it-challenge-dollar-dominance\/#Dollar_Dominance_Remains_Hard_to_Break\" title=\"Dollar Dominance Remains Hard to Break\">Dollar Dominance Remains Hard to Break<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/coinengineer.net\/blog\/chinas-stablecoin-move-can-it-challenge-dollar-dominance\/#A_New_Front_in_the_Global_Contest\" title=\"A New Front in the Global Contest\">A New Front in the Global Contest<\/a><\/li><\/ul><\/nav><\/div>\n<h2 data-start=\"546\" data-end=\"583\"><span class=\"ez-toc-section\" id=\"China_Enters_the_Stablecoin_Race\"><\/span>China Enters the Stablecoin Race<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"585\" data-end=\"859\">The move highlights Beijing\u2019s ambition to strengthen the yuan\u2019s role in international finance. Yet, experts warn the path is far from easy. The digital yuan has so far failed to gain traction, largely due to the dominance of <strong>Alipay and WeChat Pay<\/strong> in everyday transactions.<\/p>\n<p data-start=\"861\" data-end=\"1144\">Martin Chorzempa from the Peterson Institute believes the most significant use case for a yuan-backed stablecoin could be <strong data-start=\"983\" data-end=\"1008\">cross-border payments<\/strong>. \u201cIf yuan stablecoins circulate, could this allow people to transfer money in ways they couldn\u2019t through traditional banks?\u201d he asks.<\/p>\n<p data-start=\"1146\" data-end=\"1427\">But the main challenge lies in trust. As Chorzempa notes, China is known for its anti-crypto stance. If this new stablecoin comes with the same restrictions and surveillance as the current yuan, it may struggle to compete with the US dollar, which remains far more freely usable.<\/p>\n<h2 data-start=\"1429\" data-end=\"1472\"><span class=\"ez-toc-section\" id=\"Dollar_Dominance_Remains_Hard_to_Break\"><\/span>Dollar Dominance Remains Hard to Break<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"1474\" data-end=\"1771\">The market challenges are just as steep. Patrick Tan, CEO of ChainArgos, points out that <strong data-start=\"1563\" data-end=\"1618\">98% of all stablecoin transactions are dollar-based<\/strong>. Despite China\u2019s close ties to major crypto exchanges like <strong>Binance, OKEx, and Bybit<\/strong>, these platforms overwhelmingly rely on dollar-backed stablecoins.<\/p>\n<p data-start=\"1773\" data-end=\"2025\">According to Tan, the issue is structural: \u201cIf China wants to make the digital yuan attractive, it must first make the yuan itself attractive. That requires deep political and economic reforms, which under current conditions are extremely difficult.\u201d<\/p>\n<h2 data-start=\"2027\" data-end=\"2065\"><span class=\"ez-toc-section\" id=\"A_New_Front_in_the_Global_Contest\"><\/span>A New Front in the Global Contest<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"2067\" data-end=\"2297\">Whether China\u2019s stablecoin initiative succeeds or fails, one thing is clear: stablecoins are no longer just part of crypto infrastructure. They have become tools in a larger <strong data-start=\"2241\" data-end=\"2269\">geopolitical competition<\/strong> over the future of money.<\/p>\n<p data-start=\"2067\" data-end=\"2297\"><em>You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don\u2019t forget to follow us on our\u00a0<a href=\"https:\/\/t.me\/coinengineernews\" target=\"_blank\" rel=\"nofollow noopener\"><strong>Telegram,\u00a0<\/strong><\/a><a href=\"https:\/\/www.youtube.com\/@CoinEngineer\" target=\"_blank\" rel=\"nofollow noopener\"><strong>YouTube<\/strong><\/a>,\u00a0and\u00a0<a href=\"https:\/\/twitter.com\/coinengineers\" target=\"_blank\" rel=\"nofollow noopener\"><strong>Twitter<\/strong><\/a>\u00a0channels for the latest\u00a0<a title=\"News\" href=\"https:\/\/coinengineer.net\/blog\/news\/\" data-internallinksmanager029f6b8e52c=\"7\">news<\/a>\u00a0and updates.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>China is reportedly considering launching a yuan-backed stablecoin, with an initial rollout expected in Hong Kong and Shanghai. This marks a surprising shift, as Beijing has spent years cracking down on crypto while promoting its central bank digital currency (CBDC), the digital yuan. If realized, this stablecoin initiative could open a new chapter in the<\/p>\n","protected":false},"author":29,"featured_media":31609,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,2],"tags":[10054,22,654,7127,1205,3950,22698,22700,488,22699],"class_list":["post-48741","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-news","tag-alipay","tag-binance","tag-bybit","tag-central-bank-digital-currency-cbdc","tag-china","tag-dollar","tag-okex","tag-pekin","tag-stablecoin","tag-wechat-pay"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>China\u2019s Stablecoin Move: Can It Challenge Dollar Dominance? - Coin Engineer<\/title>\n<meta name=\"description\" content=\"China is reportedly considering launching a yuan-backed stablecoin, with an initial rollout expected in Hong Kong and Shanghai.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/chinas-stablecoin-move-can-it-challenge-dollar-dominance\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"China\u2019s Stablecoin Move: Can It Challenge Dollar Dominance? 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