Hi HODLers,
In a surprising news shared by Reuters link here Chinese authorities may authorize yuan-backed stablecoins for the first time to promote global use of its currency. That would be a first and looks like a 180 degrees shift.
Some high-ranked official shared that:
One use case for a potential yuan-backed stablecoin from mainland China would be the implementation of stablecoins for cross-border trade and payments with some countries.
That would make sense as it is really complicated to do business with China due to the multiple currency controls, Offshore and Onshore RMB, etc...
I think they have also been realizing that the USD is so far just facing 0 competition in the stablecoin space.
Currently, the US dollar makes up 47.2% of global payments. BUT dollar-backed tokens represent almost 98% of $288 billion in the total stablecoin market capitalization, according to CoinMarketCap.
Oviously we should see more Euro and Yuan based assets and stablecoins but USD got a strong headstart.
Stay safe out there,