China is reportedly investigating the possibility of using the original stubcoin in oil trading. This is a move that can significantly advance international use of currency.
China National Petroleum Corporation (CNPC), one of the world’s largest energy companies, recently unveiled plans to launch a feasibility study on the use of stability for cross-border settlements and payments.
CNPC mentions stubcoin payments
China’s state council will discuss expanding the use of Yuan Stab Coin at the upcoming Shanghai Cooperation Organization (SCO) summit, according to Reuters.
The Chinese government sees stubcoin as a promising tool to expand its original global impact. The original accounts for just 2.88% of Swift’s international payments, far behind US Doler’s 47.19% share.
Oil payments have traditionally been the dominant territory of global currency. If you have important payment channels like the oil trade, you can significantly increase your original share.
China has a history of using the “Petroyuan” approach for the oil trade, particularly in its dealing with Russia. It essentially follows the precedent set by the US along with Petrodler. For example, by 2024, 90% of trade between the two countries had settled in the Yuan and the Ruble, decoupling the dollar.
The CNPC statement that it closely monitors the Hong Kong Monetary Authority’s stable licensing trends could be interpreted as an intention to become the Stablecoin issuer itself. If top energy companies like CNPC use Stablecoins for cross-border transactions, they can dramatically reduce payment times and costs.
The Chinese government has already begun to divide its roles. Hong Kong assumes the practical role of hubs that already implement and operate a ridiculous regulatory system.
China’s mixed reaction: hope and doubt about stubcoin
Official responses within China also show strong support for the idea. On social media, some commentators have called Yuan Stablecoin “Good News.” They suggested that a cleaner money channel could be created for ordinary Chinese people.
Analysts highlighted its potential role in belts and road trade, as a strategic response to the US dollar’s domination in global stubcoins. These welcome voices hope that Stubcoin can strengthen China’s economic impact overseas.
At the same time, not everyone in China is completely certain about accepting stubcoins. Former PBOC governor Zhou Xiaochuan issued a strong warning, claiming that Stablecoin’s circulation could lead to “currency overissue” without full reserves, and could amplify risks through leverage.
He also questioned whether tokenized systems could realistically be replaced with traditional account-based payments. Zhou warned against speculative misuse and potential threats to China’s capital management. His remarks highlight the cautious undercurrent within Beijing, despite policy advisors calling for greater use of digital currency.
Meanwhile, the Digital Yuan International Operations Centre has been established in Shanghai. Major regulatory bodies, including the People’s Bank of China (PBOC), are set up to assign specific implementation tasks. Competition between the US and China to issue Stablecoins is expected to intensify.
The Chinese Post is one step further than the original stubcoin. The oil trade first appeared in beincrypto.
