The People's Bank of China calls for monitoring of stablecoins in global payments: expert analysis
The People's Bank of China (PBOC) has officially emphasized the need for closer monitoring of how stablecoins impact the international monetary architecture and cross-border transfer mechanisms. This statement was made by Wang Xin, head of the regulator's research unit, during the annual financial forum in Shanghai.
The key thesis of the speech is that the international payment infrastructure should evolve towards greater security, neutrality, and efficiency. According to Wang, it is critically important to establish closer interaction between central bank settlement systems and retail payment networks. At the same time, he stressed the need for a "cautious and sustainable" approach to studying the potential of new financial instruments, improving regulation, and strengthening interstate coordination.
Payments as the Foundation of Global Trade
Wang Xin linked the topic of payments to sustainable development and international investments, noting that the modern system faces growing uncertainty and, in his words, is turning into a tool of pressure. Cross-border financing, the PBOC representative emphasized, requires an efficient and diverse payment infrastructure capable of supporting global trade and economic growth.
In this context, the central bank proposes not only to monitor whether stablecoins will begin to play a more significant role in cross-border settlements but also to actively explore the possibilities of using central bank digital currencies (CBDCs) beyond national markets. This signals that Beijing sees stablecoins both as a potential threat to its sovereignty and as a possible tool for expanding the influence of the yuan.
China's Policy: Cryptocurrency Ban and Focus on the Digital Yuan
Mainland China still maintains strict restrictions on cryptocurrency operations. Since 2021, when authorities banned mining and limited bank participation in Bitcoin transactions, regulators have repeatedly confirmed the illegal status of cryptocurrency operations and specifically pointed out the risks associated with stablecoins.
Against this backdrop, the development of payment innovations in the country proceeds exclusively through the digital yuan (e-CNY), banking infrastructure, and regulated channels. In June 2026, the International Digital Yuan Operations Center, opened in Shanghai in September 2025, signed direct participation agreements with 26 financial organizations. Participants will gain access to an integrated platform for cross-border settlements, Cross-border e-CNY Transfer Services, which will provide round-the-clock digital payment links with foreign central banks.
Moreover, the PBOC announced new measures to develop the offshore yuan in Shanghai: six major state-owned banks received the right to conduct offshore yuan operations in the free trade zone. A FIMA RMB Repo instrument was also created, allowing foreign central banks and sovereign funds to obtain liquidity in the national currency backed by high-quality Chinese bonds. All these steps are aimed at strengthening the internationalization of the yuan and reducing dependence on the dollar payment system.
Expert Commentary: China's current strategy is a classic example of a "dual game." On one hand, Beijing harshly suppresses decentralized stablecoins, seeing them as a threat to its capital control. On the other, it is actively creating its own fully controlled digital ecosystem (e-CNY), which could become a more efficient and convenient tool for cross-border settlements than traditional bank transfers. If China succeeds in scaling e-CNY to international markets, it could radically change the balance of power in the global financial system, weakening the dominance of the US dollar.