AsianFin -- China is facing growing calls from top policy advisers and economists to examine the use of stablecoins in cross-border transactions, as the U.S. accelerates efforts to cement the dollar’s dominance through the nascent technology.

Despite maintaining a comprehensive ban on cryptocurrency activities and not formally adopting stablecoins—digital tokens backed by traditional currencies—recent signals from senior central bank officials are renewing debate over their potential role in the future of global payments.

In June, People’s Bank of China Governor Pan Gongsheng said stablecoins could reshape international finance, especially at a time when geopolitical tensions are exposing the vulnerabilities of traditional payment systems. He warned that such systems are increasingly susceptible to politicization and can be wielded as instruments of sanctions.