CBDC News

China Considers Yuan Stablecoins

Reuters reports that China’s State Council is considering allowing the use of yuanbacked stablecoins. Intended to boost adoption of the yuan globally, this would be a change in policy given that China banned cryptocurrency trading and mining in 2021 due to concerns about the stability of the financial system.

China’s tight capital controls and its trilliondollar annual trade surpluses are likely to be a key hurdle to the development of stablecoins. The yuan’s share as a global payment currency fell to 2.88% in June, the lowest level in two years, according to SWIFT, while the US dollar had a 47.19% market share.

GENIUS Act is Now Law

The US President has signed the GENIUS Act into law. The Act creates a federal framework for issuing and regulating payment stablecoins, although it is silent on a few notable matters including redemption mechanics, interoperability, and technical security.