Crypto news

The People's Bank of China (PBOC) is once again drawing the market's attention to the rapidly growing influence of stablecoins. Wang Xin, head of the regulator's research bureau, made a policy statement emphasizing the need for careful monitoring of how digital assets pegged to fiat currencies are transforming the global financial architecture. On the agenda is not just a technological trend, but a fundamental shift in the mechanisms of cross-border settlements.

Wang Xin noted that the international payment infrastructure should become safer, more neutral, and more efficient. He called for a "cautious and sustainable" exploration of the potential of new instruments, improving regulation, and strengthening international coordination. The key message: according to the regulator, the current settlement system is increasingly being used as a tool of pressure, creating risks for global trade and investment.

Payments as Infrastructure for Trade and Investment

The speech took place at the plenary session "Reform and Cooperation in Global Financial Governance" as part of the annual financial forum in Shanghai. Wang Xin linked the topic of payments to sustainable development and international investments. According to him, an efficient and diverse payment infrastructure is the foundation for supporting global trade and economic growth. It is in this context that the PBOC proposes to closely monitor whether stablecoins will begin to play a more important role in cross-border settlements, as well as to study the application of CBDCs beyond national markets.

Cryptocurrency Policy and the Digital Yuan: Two Poles of One Strategy

Let me remind you that strict restrictions on cryptocurrency operations remain in place in mainland China. Since 2021, mining has been banned, and the participation of banks and payment systems in Bitcoin transactions is strictly limited. Regulators have repeatedly confirmed the illegal status of cryptocurrency operations, specifically pointing out the risks of stablecoins.

However, this does not mean that China is abandoning innovation. On the contrary, the development of payment technologies is following an alternative path — through the digital yuan (e-CNY). On June 16, the International Digital Yuan Operations Center, opened in September 2025, signed direct participation agreements with 26 financial institutions in Shanghai. Participants will gain access to an integrated platform for cross-border settlements, the Cross-border e-CNY Transfer Services, which will provide round-the-clock digital payment links with foreign central banks.

Moreover, six major state-owned banks, including Bank of China and China Construction Bank, have already received the right to conduct operations with offshore yuan in the Shanghai Free Trade Zone. And the creation of the FIMA RMB Repo instrument will allow foreign central banks and sovereign funds to obtain liquidity in the national currency, secured by high-quality Chinese bonds.

All of this is part of a strategy to internationalize the yuan and reduce dependence on the dollar-centric system. Given that in August 2025, information emerged about a possible permission to issue yuan-denominated stablecoins, we are witnessing the consistent construction of a new payment ecosystem where stablecoins and CBDCs will coexist, but under strict state control.

My analysis: China is demonstrating a pragmatic approach. Instead of fighting the technology of stablecoins, Beijing is preparing to take it under its control and integrate it into its own financial infrastructure. The PBOC's statement is not a warning about risks, but a signal to the market: the future of cross-border payments will be determined not by the chaotic issuance of private stablecoins, but by state digital currencies and regulated instruments. Investors should closely monitor the development of the e-CNY infrastructure — it is here, not in speculative tokens, that the future potential of the Chinese market lies.