Beijing changes course: People's Bank of China calls for monitoring of stablecoins in global payments
The People's Bank of China (PBOC) has made a landmark statement, calling for a closer analysis of the role of stablecoins in the international monetary system. Wang Xin, head of the regulator's research bureau, emphasized the need to enhance the security, neutrality, and efficiency of the global payment infrastructure during his speech at the annual financial forum in Shanghai.
According to the PBOC representative, the current system of cross-border settlements is facing growing uncertainty and risks becoming a tool of political pressure. In this regard, the regulator proposes not merely to observe the development of stablecoins but to purposefully study their potential for cross-border transfers, as well as to more actively implement central bank digital currencies (CBDCs) beyond national jurisdictions.
From Bans to Integration: China's Strategy in the Era of Digital Assets
It is worth recalling that mainland China maintains strict restrictions on cryptocurrency operations, introduced back in 2021. However, the latest PBOC statements indicate a paradigm shift: instead of total rejection, Beijing is beginning to strategically study how stablecoins can fit into the new architecture of international finance. This is a pragmatic approach characteristic of the Chinese governance model.
In parallel, China is accelerating the internationalization of its digital yuan (e-CNY). In June 2026, the International Center for Digital Yuan Operations signed agreements with 26 financial institutions, connecting them to the Cross-border e-CNY Transfer Services platform. This step, along with the creation of the FIMA RMB Repo instrument for foreign central banks, aims to reduce dependence on the dollar system and strengthen the yuan as a settlement currency.
Notably, back in August 2025, media reports emerged that the Chinese government was considering the possibility of legalizing yuan-denominated stablecoins. This indicates that the regulator is preparing the ground for a hybrid model: combining a tightly controlled digital yuan with potentially permitted but strictly regulated stablecoins.
My comment: The PBOC statement is not just rhetoric. It is a signal to the market that China, while remaining an opponent of uncontrolled crypto-anarchy, sees stablecoins as a tool to strengthen its influence in the global payment system. If Beijing indeed allows yuan-denominated stablecoins, it will become one of the most significant events in the crypto industry, capable of radically changing the landscape of international settlements and challenging the dominance of the US dollar.