[About China's stablecoin, the latest report from Reuters]

China may approve a人民币-denominated stablecoin later this month. Sources say that the plan is expected to include goals for the use of人民币 in global markets and clarify the responsibilities of domestic regulatory agencies. In addition, the roadmap will also incorporate guidelines for risk prevention.
One source stated that senior Chinese leaders are also expected to hold a special study meeting as early as the end of this month, focusing on the internationalization of the Renminbi and the rapidly developing stablecoins globally.
The open economy of the United States is absolutely leading in the cryptocurrency sector.
In countries with foreign exchange controls, it is a very difficult goal to allow individual users to "decentralized use of stablecoins". It is highly likely that, like in Hong Kong, anyone holding and trading stablecoins must first undergo identity verification. Only after verifying their identity will they be given a whitelist for opening a personal on-chain wallet address. This chain also cannot be overseas public chains like Ethereum or Solana.
Otherwise, anyone can exchange RMB online and offline without identity verification and then hold RMB stablecoin on the blockchain. The RMB stablecoin can be freely exchanged on-chain for USDT/USDC and other USD stablecoins, which can then be freely used for consumption abroad or redeemed for USD, making the foreign exchange control wall effectively nonexistent.