The post Stablecoins Offer Beijing What e-CNY Can’t in Cross-Border Use, Economist Says appeared on BitcoinEthereumNews.com.

Good Morning, Asia. Here’s what’s making news in the markets: Welcome to Asia Morning Briefing, a daily summary of top stories during U.S. hours and an overview of market moves and analysis. For a detailed overview of U.S. markets, see CoinDesk’s Crypto Daybook Americas. China’s growing focus on stablecoins is less about embracing crypto and more about defending its currency from U.S. dollar dominance, says Dr. Vera Yuen of Hong Kong University’s Business School, who argues the shift highlights offshore opportunities but also deep domestic limits. Beijing’s shift comes as Washington moved first to create a regulatory framework for the stablecoin industry in the U.S. Reuters recently reported that China’s State Council is reviewing a roadmap for yuan-backed stablecoins later this month, with Hong Kong and Shanghai expected to fast-track adoption. In an earlier interview, Animoca Group president Evan Auyang told CoinDesk the trigger was the U.S. GENIUS Act, which cements dollar-pegged tokens as part of global finance. He said the law is “pressuring China to act a lot faster,” pushing Beijing to consider stablecoins not as speculative instruments, as once described by the People’s Bank of China, but as necessary infrastructure to keep pace in global trade and settlement. Yuen said the government first prioritized the e-CNY, its Central Bank Digital Currency, because it offered control, traceability, and seigniorage profits — features that regulators valued over those of privately issued tokens. But she noted that stablecoins have a clear edge in international use. “Many CBDCs are developed for domestic use, so for international use of CBDCs, there is a big problem of interoperability of different systems. Stablecoins are designed to be used internationally, so it can be a better option for cross-border transactions,” she told CoinDesk. “Focusing on stablecoins allows China to respond proactively to global regulatory debates and…

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Filed under: News - @ August 28, 2025 5:28 am