China is running pilot tests of renminbi-linked stablecoins and is preparing to allow the first formal issuances in Hong Kong, according to the Financial Times. The initiative is part of Beijing’s broader effort to internationalise the RMB and develop a digital alternative to dollar-denominated tokens that dominate global crypto markets. Officials hope the new instruments will make it easier for offshore investors to hold and transfer RMB while helping the mainland counter persistent capital outflow pressure. Analysts say the move complements the e-CNY trials already under way onshore, but, unlike the central-bank digital currency, the stablecoins would be issued by licensed private entities and fully backed by reserves. Regulators have warned that the products could expose the financial system to money-laundering and other compliance risks, concerns that may slow commercial rollout. The People’s Bank of China is still drafting detailed supervisory rules, and no timetable for public launch has been finalised.