Short Description
China bans all unauthorized yuan-pegged stablecoins, reinforcing its strict crypto controls while actively promoting its state-backed digital currency, the e-CNY.
Read Time
4 minutes 15 seconds
Main Article
China’s central bank, alongside seven key regulatory agencies, has issued a sweeping ban on the unapproved issuance of Renminbi-pegged stablecoins and tokenized real-world assets (RWAs). The joint statement explicitly forbids any entity, domestic or foreign, from creating stablecoins linked to China’s currency without official consent. This decisive move underscores Beijing’s long-standing strategy to curb cryptocurrency speculation and prevent any potential challenge to its monetary sovereignty. Analysts, like former China Investment Corporation managing director Winston Ma, note this reinforces a multi-year project: isolating volatile crypto assets from the formal financial system while the government aggressively advances its own central bank digital currency (CBDC), the digital yuan.
The ban comprehensively covers both the onshore (CNY) and offshore (CNH) versions of the Renminbi, closing any potential loopholes for global stablecoin issuers. This regulatory crackdown follows a period of apparent deliberation. In mid-2025, reports suggested Chinese authorities were considering allowing private stablecoin issuance, but those trials were quickly halted by September. The government’s current path is clear: full control over the digital representation of its currency. This focus is evidenced by the recent approval for commercial banks to offer interest on digital yuan holdings, a direct incentive to boost adoption of the state-managed CBDC over private alternatives.
For the global finance sector and observers in the United States, China’s policy creates a stark contrast in digital currency approaches. Where other markets grapple with regulatory frameworks for private stablecoins like USDT or USDC, China is eliminating competition for its CBDC. This ban not only tightens China’s capital controls but also positions the e-CNY as the sole digital yuan for both domestic and international use cases. The message to crypto innovators is unequivocal—within China’s sphere, the future of digital currency is state-issued and state-controlled.
Short Summary
China has prohibited all unauthorized issuance of yuan-linked stablecoins and tokenized assets, applying the ban to both domestic and foreign entities. This action strengthens state control over digital currency, directly supporting the promotion of China’s official central bank digital currency (CBDC), the digital yuan, while decisively sidelining private cryptocurrency alternatives.
