Editor's PiCK
China Promotes First Stablecoin Issuance...RMB Internationalization vs. Capital Outflow Risk 'Conflict'
Summary
- The Chinese government announced plans to allow the issuance of its first stablecoin.
- This move is reportedly aimed at promoting the internationalization of the RMB and responding to the dominance of the U.S. dollar.
- However, concerns about capital outflows have raised the importance of balancing the spread of technology with financial stability.
The Chinese government is reportedly planning to allow the issuance of its first stablecoin.
According to the Financial Times (FT) on the 6th (local time), the Chinese government plans to allow the issuance of the country's first stablecoin to promote the internationalization of the RMB and counter the dominance of the U.S. dollar. However, concerns from authorities about capital outflows are acting as a key factor delaying the spread of the technology.
FT explained, "Chinese policymakers are noting that stablecoins are serving as a means to further solidify the dominance of the dollar. In response, they are accelerating the development of RMB-based digital assets." The article added, "However, within China's system, where financial control is central, finding balance between the spread of technology and financial stability is emerging as a challenge."
Suehyeon Lee
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