China is considering approving yuan-backed stablecoins for the first time to boost the usage and influence of its currency globally, Reuters reported, citing unnamed people familiar with the matter. The government will study a roadmap to promote the yuan later this month, including ways to catch up with the U.S.’s push on stablecoins, the outlet said. China’s tech giants JD.com and Alibaba affiliate Ant Group have urged the central bank to authorize stablecoins pegged to offshore yuan, as more Chinese exporters have turned to dollar-pegged stablecoins to settle trade, Reuters reported in July. For years, China has been promoting the usage of the yuan in international trade to counter the U.S. dollar’s global dominance, though with limited success. China has capital controls and its currency’s value is controlled by Beijing. There is a market for offshore yuan that are freely traded outside of the mainland. China banned #Crypto trading and mining in 2021. People’s Bank of China adviser Huang Yiping told local media Yicai in July that an offshore yuan stablecoin in Hong Kong is “a possibility,” but opening up crypto and stablecoin activities in mainland China is unlikely, given concerns over financial stability. Hong Kong passed a stablecoin bill to establish a license regime in May, which took effect August 1. Most prospective applicants are interested in issuing HK dollar and US dollar-pegged stablecoins, and applicants for offshore-yuan backed stablecoins will need to specify their use cases and reserve assets, the Hong Kong Monetary Authority said in July. The Hong Kong dollar is pegged to the U.S. dollar. #A Glance of China 行摄中国 reuters.com/business/fina..