Beijing has just clarified its position radically. The People's Bank of China formally prohibits the issuance of yuan-backed stablecoins and tokenized assets, for both Chinese and foreign companies. A red line now established.
In brief
- The People's Bank of China and seven regulators ban unauthorized issuance of yuan-pegged stablecoins and tokenized assets (RWA).
- The ban targets all issuers, national and international, and applies to both onshore (CNY) and offshore (CNH) yuan.
- Beijing is betting everything on its digital yuan (e-CNY), its own central bank digital currency, the attractiveness of which has just been strengthened.
The final blow against private stablecoins
The decision announced Friday by the People's Bank of China (PBOC) leaves no room for ambiguity. From now on, ” no unit or individual at home or abroad can issue stablecoins linked to RMB (Renminbi) without the consent of relevant departments “. This joint declaration, signed in particular by the Ministry of Industry and the Securities Regulatory Commission, marks a definitive turning point.
Winston Ma, professor at the New York University School of Law and former director of the Chinese sovereign wealth fund CIC, analyzes this ban as “the last step in a multi-year project”.
The objective? Keeping cryptocurrencies out of the formal financial system while actively promoting e-CNY, the state-controlled digital yuan. This strategy reveals a clear desire: Beijing does not want any competition with its own digital currency.
The ban covers both the onshore yuan (CNY) and its offshore version (CNH), the latter allowing a certain flexibility on international foreign exchange markets. By blocking any private stablecoin initiative, China is consolidating its monetary monopoly and strengthening its financial sovereignty against American giants in the sector like Tether or Circle.
From hesitation to total ban
The path taken by Beijing has not been linear. Last August, there were rumors of a possible opening allowing private companies to issue yuan-backed stablecoins. This potential turnaround would have marked a historic break with the ultra-restrictive policy pursued for years. But the euphoria was short-lived.
By September, the Chinese government reversed course, requiring issuers to suspend or stop their pilot projects “until further notice.” This hesitation-waltz illustrates the internal tensions within the regime between financial innovation and maintenance of state control. Ultimately, it was the second option that won out, unsurprisingly.
To make its digital yuan more attractive, Beijing released a master card in January 2026. Commercial banks are now authorized to pay interest on e-CNY wallets. This measure aims to attract savers and investors who could be tempted by the returns offered elsewhere, particularly in DeFi or via private stablecoins.
This withdrawal strategy could cost China dearly in the long term. While dollar stablecoins dominate international digital commerce, Beijing is cutting itself off from a booming segment. The ban also slows down the tokenization of assets, a promising sector for modernizing financial markets. It remains to be seen whether the digital yuan will be enough to fill this void.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
