Renminbi (RMB)/Yuan Appreciation & Internationalization

two news from past month on RMB internationalization. I think the future exchange one is pretty huge.

RMB/CNY is now gold redeemable. China should replace most of its holdings of US Treasuries with precious metals if possible.

so domestic firms are now pushing for RMB stablecoin. This is going to be very interesting to see if Chinese government allows this to go forward.

Risk management is the goal here.

What we are witnessing in 2025 is not a radical challenge to the prevailing currency system, but the construction of a parallel one – intended not to displace the dollar, but to reduce exposure to it. China is leveraging global uncertainty to accelerate a model of selective internationalization it has long been developing. This model does not aim to overturn the existing monetary order, but to insulate China and its partners from its volatility and to expand China’s influence in targeted domains. It does not seek to replace one global financial hegemon with another, but to mitigate the risks of reliance on the existing one. Rather, RMB internationalization is incremental but accelerating – a recalibration of risk, reach, and the rules of global finance.

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Wrought said:

Risk management is the goal here.

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well, that's part of it, the other part is building financial industry.

if you watch this, clearly the Hong Kong government is promoting itself as a center for crypto industry and it's offering currency stable coins.

tphuang said:

https://twitter.com/i/web/status/1940948385751879826

so domestic firms are now pushing for RMB stablecoin. This is going to be very interesting to see if Chinese government allows this to go forward.

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Whats the diff of function between Digital yuan and rmb stable coin?

tphuang said:

https://twitter.com/i/web/status/1940948385751879826

so domestic firms are now pushing for RMB stablecoin. This is going to be very interesting to see if Chinese government allows this to go forward.

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There seems to be government support. Policy, acknowledgement were there.

GulfLander said:

Whats the diff of function between Digital yuan and rmb stable coin?

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Digital yuan is an official central bank digital currency(assuming that is what you meant) and stable coins means that one digital coin is backed by some official currency. So one of x, y, z stable coin can always be exchanged for a (digital) yuan, dollar, euro and vice versa.

BlackWindMnt said:

Digital yuan is an official central bank digital currency(assuming that is what you meant) and stable coins means that one digital coin is backed by some official currency. So one of x, y, z stable coin can always be exchanged for a (digital) yuan, dollar, euro and vice versa.

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Pardon my ignorance...so the digital yuan can be used only in China, and the stablecoin used anywhere?

chlosy said:

Pardon my ignorance...so the digital yuan can be used only in China, and the stablecoin used anywhere?

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The digital yuan is legal money from the Peoples bank of China. A stable coins is a crypto coin printed by a 3rd parties that is supposed to be backed by legal money. Kind of like how people talk about a gold backed yuan/dollar.

So lets say you have some Hong Kong company that decides to make a RMB based stable coin. That would mean that for every stable coin they mint/print they should have at least a fraction of an yuan on some legal bank account. So technically the (digital)yuan might never leave China but its stable coin counterpart could be used for any sort of trade inside(if legal) or outside of China.

The idea behind stable coin is that they are stable relative to the legal money they are backed by. Not like let say bitcoin that can go from $100k to $30k to $70k depending on the market. Maybe things and terms changed i haven't been following the crypto scene for like 2~3 years.