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.