The People's Bank of China (PBOC) has urged closer scrutiny of the impact of stablecoins on the international monetary system and cross-border payments. This was stated by Wang Xin, head of the regulator's research bureau, local media reported.
According to him, the international payment infrastructure needs to be safer, more neutral, and efficient, and central bank settlement systems should better interact with retail networks. Wang Xin also called for a "cautious and sustainable" exploration of new tools, improvement of regulations, and enhanced coordination among countries.
"We need to closely monitor the influence of stablecoins on the international monetary system and cross-border payments," he stated.
Payments as Trade Infrastructure
Wang Xin's remarks were made during a plenary session on "Reform and Cooperation in Global Financial Governance" at the annual financial forum in Shanghai. He linked the topic of payments to sustainable development and international investments.
According to a PBOC representative, cross-border financing requires an effective and diverse payment infrastructure. It should support global trade, investment, and economic growth. However, the current system, Wang Xin noted, faces increasing uncertainty and is becoming a tool of pressure.
In this context, the central bank suggests monitoring whether stablecoins will play a more significant role in cross-border settlements and exploring the application of CBDCs beyond national markets.
Cryptocurrency Policy and the Digital Yuan
Mainland China continues to maintain strict restrictions on cryptocurrency operations. In 2021, authorities banned mining and limited the participation of banks and payment organizations in Bitcoin transactions. Later, regulators 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 is primarily occurring through the digital yuan (e-CNY), banking infrastructure, and regulated channels. According to Reuters, on June 16, the International Digital Yuan Operations Center, opened in September 2025, signed agreements for direct participation with 26 financial organizations in Shanghai.
Participants will be able to connect to the integrated platform for cross-border settlements, Cross-border e-CNY Transfer Services. This will provide 24/7 digital payment connections with foreign central banks and overseas financial institutions.
The following day, PBOC Governor Pan Gongsheng announced new measures to develop the offshore yuan in Shanghai, the agency reported. Six major state banks, including Bank of China and China Construction Bank, were granted the right to conduct offshore yuan operations in the Shanghai free trade zone.
The PBOC also created the FIMA RMB Repo tool, which will allow foreign central banks and sovereign funds to obtain liquidity in the national currency against high-quality Chinese bonds. According to Reuters, this is part of China's efforts to internationalize the yuan and reduce dependence on the global payment system dominated by the US dollar.
It is worth noting that in August 2025, sources told Reuters that the Chinese government is considering allowing the use of stablecoins backed by the yuan.