China Prepares to Launch First Stablecoins in Bid to Challenge the Dollar

China's Stablecoin Initiative: Hong Kong has introduced a regulatory framework allowing licensed firms to issue stablecoins backed by fiat currencies, aiming to reduce reliance on the U.S. dollar and expand China's financial influence through digital assets.

Growing Acceptance and Challenges: While there is increasing interest from Chinese institutions in stablecoins for global competition, experts warn that creating a viable alternative to U.S. dollar-backed stablecoins will be a long-term challenge, with initial focus likely on business-to-business transactions.