The post Crypto update: US stablecoin law prompts China to accelerate its own plans appeared on BitcoinEthereumNews.com.

China’s stablecoin push is a defensive move against US dollar dominance. The US GENIUS Act is the key trigger for Beijing’s recent policy shift. The experiment will be limited to offshore markets like Hong Kong. A seismic shift is underway in Beijing. The Chinese government, long a staunch opponent of private cryptocurrencies, is now being forced to reluctantly enter the stablecoin arena. But this is not a newfound love for digital assets; it is a calculated and defensive masterstroke in the escalating global war for currency supremacy—a direct response to a power play from Washington that threatens to cement the US dollar’s dominance for a generation to come. The Washington wake-up call The trigger for this dramatic pivot, according to industry leaders, was the passage of the U.S. GENIUS Act, a landmark piece of legislation that formally integrates dollar-pegged tokens into the architecture of global finance. Animoca Group president Evan Auyang told CoinDesk the law is “pressuring China to act a lot faster,” forcing a fundamental rethink in Beijing. Suddenly, stablecoins were no longer viewed as speculative instruments, but as essential infrastructure for global trade and settlement. Now, Reuters reports that China’s State Council is reviewing a roadmap for yuan-backed stablecoins, a move that signals a profound strategic realignment. A tale of two currencies: the global edge of a stablecoin This new direction represents a significant departure from China’s initial strategy, which focused exclusively on its own Central Bank Digital Currency, the e-CNY. According to Dr. Vera Yuen of Hong Kong University’s Business School, the government initially prioritized the e-CNY because it offered what Beijing values most: control, traceability, and profit. But as Dr. Yuen told CoinDesk, the e-CNY has a critical weakness: it was built for domestic use. “For international use of CBDCs, there is a big problem of…

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Filed under: News - @ August 28, 2025 3:29 am