China pays closer attention to stablecoins as cross-border role expands
China’s central bank is paying closer attention to stablecoins as privately issued digital currencies could play a larger role in cross-border payments and the international monetary system. A PBOC official urged regulators to monitor stablecoins, strengthen international coordination, and consider how payments could be affected by uncertainty or possible weaponization. The warning also extended to CBDCs, with cross-border use needing more policy cooperation. The comments come after Chinese agencies banned unauthorized issuance of renminbi-pegged stablecoins and tokenized real-world assets, reinforcing China’s preference for state-controlled digital money over private tokens. Stablecoins are also growing quickly globally, with supply rising to about $315 billion and quarterly transaction volume exceeding $28 trillion, though much of that activity may be driven by bots.
