According to The Kobeissi Letter, China is considering allowing yuan-backed stablecoins for the first time, characterizing it as a major policy shift and providing no linked regulatory document or implementation timeline in the post (source: The Kobeissi Letter, Twitter, Aug 20, 2025, https://twitter.com/KobeissiLetter/status/1958135144717398512). Crypto-related activities in China have been progressively restricted since the 2013 Notice on Preventing Bitcoin Risks by the People’s Bank of China and other agencies, tightened by the 2017 Announcement on Preventing the Financing Risks of Token Issuance by seven regulators, and reinforced by the 2021 Notice on Further Preventing and Disposing of the Risk of Virtual Currency Trading Hype by the People’s Bank of China (sources: PBOC 2013 notice; joint regulators’ 2017 announcement; PBOC 2021 notice). The post does not specify scope, issuer permissions, convertibility, or compliance requirements, all of which are critical for trading and liquidity assessment, and remains unconfirmed by an official regulator at the time of the tweet (source: The Kobeissi Letter, Twitter, Aug 20, 2025, https://twitter.com/KobeissiLetter/status/1958135144717398512).

According to The Kobeissi Letter, China is considering allowing yuan-backed stablecoins for the first time, following years in which crypto has been illegal and restricted since 2013; source: The Kobeissi Letter post on X dated Aug 20, 2025. The Kobeissi Letter states that this would mark a massive shift in policy if adopted, emphasizing the significance of the consideration itself; source: The Kobeissi Letter post on X dated Aug 20, 2025. The Kobeissi Letter provides no details on timeline, responsible regulator, scope, or implementation, indicating the status is consideration only with no confirmed rollout; source: The Kobeissi Letter post on X dated Aug 20, 2025.