Beijing’s Capital Controls Fuel Rise of USDT and Bitcoin Against Declining Renminbi in Global Reserves

China is focusing on elevating the renminbi to a reserve currency, yet the data indicates otherwise, revealing how Beijing’s capital constraints are fostering the emergence of alternatives like Bitcoin and dollar stablecoins, rather than serving as rivals. The latest figures from the International Monetary Fund illustrate that the renminbi only accounts for 1.93% of foreign exchange reserves globally in the third quarter of 2025, down from a peak of 2.83% in early 2022. In contrast, despite China’s efforts, the dollar maintains a dominant position with 56.92% and the euro with 20.33%. Over the past three years, the renminbi’s share of…