Chinese authorities Consider the possibility of allowing the release and circulation of stablecoins provided by the yuan. According to Reuters, citing sources familiar with the situation, the initiative is aimed at expanding the role of the Chinese currency in international settlements.

The Cabinet of Ministers of China plans to consider a roadmap for stablecoins at the end of August. The document will set out the targets for the use of the yuan in the global economy, distributed the duties of regulators, and measures to minimize risks.

The People’s Bank of China is expected to become one of the key executors of the initiative, and the first centers for its implementation were chosen Hong Kong and Shanghai. In addition, the topic of the Yuan stablecoins can be raised at the summit SCO in Tianjin (August 31 – September 1).

Despite ambitious plans, the project has barriers: tight control of capital movement and trade balance of $1 trillion annually limit the global expansion of the yuan. Analysts believe that it is these factors that can slow down the development of stablecoins.

Interestingly, in mainland China, cryptocurrencies are still banned. The government has recently warned brokers against promoting stablecoins in the domestic market, fearing the growth of fraud.