Bitcoin

China Explores Yuan-Backed Stablecoins Amid Global Digital Currency Push

Published

3 months ago

August 22, 2025

In a significant development that could reshape the international stablecoin landscape, reports indicate that China is considering approving yuan-backed stablecoins as early as this month. This move aligns with Beijing’s broader strategy to enhance its digital yuan ecosystem and maintain control over cross-border payments while countering the dominance of U.S. dollar-pegged stablecoins like USDT and USDC. The potential approval follows years of regulatory caution, where China has banned cryptocurrency trading but advanced its central bank digital currency (CBDC), the e-CNY.

This initiative could involve partnerships with select financial institutions to issue stablecoins pegged to the renminbi (RMB), ensuring they comply with stringent anti-money laundering (AML) and capital controls. Analysts suggest that yuan-backed stablecoins might facilitate smoother international trade, particularly within the Belt and Road Initiative countries, reducing reliance on the SWIFT system and mitigating U.S. sanctions risks. However, challenges remain, including interoperability with global blockchains and preventing capital outflows.

If implemented, this could accelerate stablecoin adoption in Asia, potentially pressuring other nations to accelerate their own CBDC projects. Market observers note that this news has already sparked mild optimism in Asian crypto markets, with tokens like TRX and VET seeing minor upticks. As the world watches, China’s foray into stablecoins underscores the blurring lines between traditional finance and blockchain technology, promising a more inclusive yet regulated digital economy.

Bitcoin

Cryptocurrency Gains Traction in Vietnam Amid Economic Shifts

Published

15 hours ago

November 18, 2025

Coin Reporter Correspondent

Vietnam has officially entered its most crypto-friendly phase yet.

Resolution 05/2025, signed in January, launched a two-year regulatory sandbox that for the first time permits fully licensed cryptocurrency exchanges to serve Vietnamese users legally. Eight platforms, including global giants and local champions, have already received provisional approval from the State Bank of Vietnam (SBV) and Ministry of Finance.

The pilot is no longer theoretical: live trading, fiat on-ramps via Vietcombank and BIDV, and direct VND stablecoin deposits are now active.

Perfect Storm of Demographics and Demand

Vietnam’s crypto surge is fueled by three powerful forces:

A population where 70% are under 35 and among the most tech-literate in Southeast Asia
$19 billion in annual overseas remittances, increasingly routed through stablecoins to avoid high fees and multi-day delays
A booming freelance and IT-export economy where developers and designers prefer instant USDT settlements over traditional banking

On-chain data shows Vietnamese wallets now rank in the global top five for stablecoin transfer volume, with daily peer-to-peer transactions regularly topping $80 million.

From Grey Zone to Regulated Growth

Before 2025, Vietnam was a paradox: one of the highest adoption rates in the world, yet technically operating in a legal grey zone. Exchanges served users through offshore entities while the government studied the phenomenon.

Resolution 05 ends that ambiguity. Key sandbox features include:

Mandatory KYC and real-name banking integration
100% reserve audits for customer funds
Monthly reporting to the SBV and tax authorities
Permission to offer spot trading in Bitcoin, Ethereum, and pre-approved altcoins

Early results are striking. Licensed platforms report 300–500% month-on-month user growth since July, with average account funding jumping from $180 to over $1,200 as confidence in legal protection spreads.

Positioning Vietnam as APAC’s Next Crypto Hub

Hanoi and Ho Chi Minh City are rapidly emerging as attractive destinations for blockchain startups, drawn by Vietnam’s growing regulatory clarity, lower operating costs, and a deep talent pool of over 60,000 IT graduates entering the workforce each year.

Government sources indicate the sandbox is widely viewed internally as a dress rehearsal for permanent legislation expected in 2027. Success here could cement Vietnam’s leadership in the regional digital-asset space.

Industry leaders describe the mood as electric. “Vietnam skipped the ‘wait-and-see’ phase that held back many neighbors,” said the CEO of one licensed exchange. “We went straight from prohibition to structured embrace, and the market is responding exactly as you’d expect.”

With remittances flowing faster, freelancers getting paid instantly, and a new generation treating crypto as standard infrastructure, Vietnam is proving that when policy finally catches up to people, adoption doesn’t walk; it sprints.

The sandbox clock is ticking, but the message from Hanoi is clear: cryptocurrency is no longer a question mark in Vietnam; it’s part of the answer.

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