China’s stablecoin push raises questions on dollar dominance and market trust

Beijing’s consideration of a yuan-backed stablecoin could mark a new front in the global financial system, but experts say dollar dominance, liquidity and trust are high hurdles.

China appears to be weighing the launch of a yuan-backed stablecoin, with an initial rollout in Hong Kong and Shanghai, a surprising shift after years of cracking down on crypto while promoting its central bank digital currency, the digital yuan.

In the latest episode of Byte-Sized Insight, Cointelegraph spoke with two leaders analyzing China’s potential move into stablecoins: Martin Chorzempa, senior fellow at the Peterson Institute for International Economics, and Patrick Tan, CEO of blockchain intelligence firm ChainArgos. 

The news, first reported on Wednesday, highlighted Beijing’s ambitions to strengthen the yuan’s role in international finance. Still, experts say the path forward is anything but certain, especially with the track record of its central bank digital currency (CBDC), the digital yuan. 

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