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China’s push for new digital trade rails is now running into a fragile Western alliance, turning stablecoins and central bank digital currencies into another front in the global power contest.
Chinese Vice Premier He Lifeng used a major stage at the World Economic Forum this week to call for a “cooperative” global trading system.
He also signaled that Beijing wants shared digital payment networks at a time when US–EU relations are under fresh strain from President Donald Trump’s latest tariff warnings.
His comments landed only days after new data showed a rise in China-backed cross-border digital currency tests.
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Can BRICS Digital Currencies Reduce Reliance on the US Dollar in Global Trade?
Beijing also floated a new plan to connect BRICS central bank digital currencies, a move that could ease the bloc’s dependence on the US dollar in trade.
Speaking to political and business leaders in Davos, he said China wants to support the global trading system, not overturn it. He also warned against unilateral tariffs and the rise of economic nationalism.
He didn’t mention the United States by name, but his point was clear. He said the world “must not return to the law of the jungle where the strong prey on the weak,” and added that “tariffs and trade wars have no winners.”
His remarks fit with Beijing’s recent effort to present itself as a stabilising voice as Washington threatens new tariffs on several European allies.
Tensions around digital finance, supply chains, and technology controls have also added pressure.
China’s latest economic data shows growth holding near 5% this year. Beijing is relying more on domestic demand and services to keep activity steady, while defending its large trade surplus as a result of global supply chains rather than a strategic target.
The timing of the speech was important. It came as India and other BRICS members pushed ahead with plans to link their central bank digital currencies, and as new data from a China-led pilot showed how quickly alternative payment systems are expanding.
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Why Does the US Dollar Still Control 97–98% of Fiat-Backed Stablecoin Value?
He didn’t mention specific tools in his Davos remarks. Instead, he talked about multilateralism and trade rules.
But his comments landed at a moment when Beijing is deeply involved in several digital currency projects already moving into real-world use.
Fresh figures this week show that Project mBridge, a wholesale cross-border payment network backed by the People’s Bank of China and a group of regional central banks, has cleared more than $55Bn in transactions across over 4,000 deals.
Analysts estimate that about 95% of that activity involves the digital yuan.
Even so, the broader stablecoin market remains anchored to the US dollar for now.
Stablecoin Payments Hit Roughly $33 Trillion In 2025
Recent data from the International Monetary Fund shows how deeply the digital dollar now sits at the center of the stablecoin market.
The IMF estimates that about 97–98% of all fiat-backed stablecoin value is tied to the US dollar. That share is far higher than the dollar’s weight in global GDP or trade.
The IMF also pointed out last year that most stablecoins track the dollar, even though the bulk of transactions take place outside the United States.
It’s a sign that digital dollars continue to move through offshore markets and into emerging economies where users want quick and predictable settlement.
Other research backs this up. TRM Labs and several independent analysts say more than 90% of fiat-backed stablecoins are dollar-denominated.
Tether’s USDT and Circle’s USDC make up most of that supply.
Bloomberg, citing Artemis Analytics, reported this month that stablecoin payments hit roughly $33Tn in 2025.
That’s an increase of about 72% from the year before. USDC and USDT alone accounted for more than $30Tn of that activity.
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Key Takeaways
China’s push for new digital trade rails is now running into a fragile Western alliance, turning stablecoins and central bank digital currencies into another front in the global power contest.
China’s latest economic data shows growth holding near 5% this year. Beijing is relying more on domestic demand and services to keep activity steady, while defending its large trade surplus as a result of global supply chains rather than a strategic target.
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