The People’s Bank of China (PBOC) has called for more careful monitoring of the impact of stablecoins on international monetary systems and cross-border payments. This was stated at the Shanghai Financial Forum by the head of the regulatory research bureau, Wang Xin, who noted that the current global payments infrastructure faces uncertainty and is increasingly being used as an instrument of geopolitical pressure.

Despite maintaining a strict prohibition on cryptocurrencies in mainland China (since 2021), the regulator is actively developing alternative mechanisms for dedollarization. On June 16, the International Digital Yuan Operations Center, opened in September 2025, signed direct participation agreements with 26 financial institutions in Shanghai to connect to the Cross-border e-CNY Transfer Services platform. The next day, NBK Chairman Pang Gunsheng announced new measures: six major state-owned banks (including Bank of China and China Construction Bank) were allowed to operate offshore renminbi in the Shanghai free trade zone, and the FIMA RMB Repo instrument was launched to provide renminbi liquidity to foreign central banks on Chinese bonds.

These measures are aimed at accelerating the internationalization of the renminbi and reducing reliance on a dollar-based payment system. In August 2025, it was reported that Beijing was also considering legalizing yuan-backed stablecoins, underscoring China’s comprehensive approach to reforming the global financial architecture.