Strict capital restrictions and declining Renminbi share in global reserves are prompting market participants to favor stablecoins like USDT and Bitcoin for cross-border transactions.
China’s ongoing capital controls are leading traders to increasingly use USDT (a U.S. dollar-pegged stablecoin) and Bitcoin for transactions, as the Renminbi’s share in global reserves continues to fall. The tighter restrictions on currency movement are incentivizing the use of crypto assets for settling trades and moving capital internationally. This trend reflects broader market adaptation to regulatory constraints and shifts in global currency dominance.