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 take on a potentially larger role in the international monetary system and cross-border payments.

Wang Xin, director general of the Research Bureau at the People’s Bank of China (PBOC), urged authorities to closely monitor the impact of stablecoins while improving international coordination and regulation, Chinese news outlet The Paper reported on Wednesday. 

“We also need to pay attention to several new areas, such as whether stablecoins will play a more important role in cross-border payments, and how regulation, international coordination and cooperation should proceed,” Wang reportedly said, according to a machine translation. 

He also warned that growing uncertainty and a potential weaponization of payments could disrupt normal cross-border transactions. 

The remarks reflect growing attention among Chinese regulators to the potential role of stablecoins in cross-border payments and the international monetary system.

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While Wang advocated for stronger oversight and cautious exploration, he did not endorse stablecoins or announce policy changes. 

In addition to stablecoins, Wang warned about central bank digital currencies (CBDCs). He said the role of CBDCs in cross-border payments also warrants closer observation, along with improved policy cooperation. 

China’s stablecoin scrutiny comes amid rapid growth

Wang’s remarks come months after the PBOC and seven other Chinese agencies banned the unauthorized issuance of renminbi-pegged stablecoins and tokenized real-world assets on Feb. 6. 

The rules applied to foreign and domestic entities and covered onshore and offshore versions of the yuan, requiring issuers to obtain government approval, reinforcing China’s preference for state-controlled digital money over privately issued tokens.

Stablecoin market cap dropped back to $315 billion after rising to as high as $322 billion. Source: DefiLlama

Stablecoins account for a growing share of digital asset market activity. In the first quarter of 2026, the overall stablecoin supply grew by about $8 billion to reach $315 billion for the first time, according to data from CEX.io.

CEX.io said that stablecoin transaction volume exceeded $28 trillion in the quarter, while representing 75% of the total crypto trading volume. Despite this, CEX.io estimated that bots generated roughly 76% of the transaction volume.

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