Chinese users turn to ‘U cards’ to get around crypto rules: Asia Express
Viral “U cards” are quietly onboarding Chinese users to crypto, and the digital yuan can now earn depositors interest at banks. Asia Express.
Stablecoins are finding an indirect path into China via payment cards going viral on social media.
Locally referred to as U cards, overseas Visa or Mastercards linked to stablecoin balances such as USDT, have surged in popularity on Chinese social platform Xiaohongshu, AKA Little Red Book. Posts explain how to obtain the cards with ease and use them for everyday overseas payments, such as subscriptions to services.
Such cards allow users to spend dollar-denominated stablecoins while merchants receive fiat currency, meaning Chinese businesses never directly touch crypto. Conversion is handled by overseas banks or licensed payment institutions, placing the transaction outside Chinas domestic financial rails.
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