In a significant move, the People's Bank of China (PBOC), along with seven other regulatory bodies, has announced a ban on the issuance of Renminbi-pegged stablecoins and tokenized real-world assets (RWAs) without prior approval. This decision impacts both domestic and international entities aiming to issue such digital assets.
The joint statement, which also includes endorsements from the Ministry of Industry and Information Technology and the China Securities Regulatory Commission, underscores the government's stance on regulating the digital currency landscape. According to a translation of the announcement, "Stablecoins pegged to fiat currencies mimic some functions of fiat money in circulation and use. No entity or individual, whether domestic or international, is permitted to issue RMB-linked stablecoins without necessary authorization from relevant departments."
Winston Ma, an adjunct professor at New York University Law School and former Managing Director of China's sovereign wealth fund, highlighted that the ban covers both onshore and offshore versions of the Renminbi. Ma explained that the CNH, the offshore Renminbi, is designed to offer flexibility in foreign exchange markets while maintaining currency controls.
This directive is part of China's ongoing efforts to keep speculative cryptocurrencies outside its formal financial system while promoting the use of the digital yuan, the country's central bank digital currency (CBDC). Recently, the Chinese government approved commercial banks to offer interest to clients using the digital yuan, further incentivizing its adoption.
Earlier discussions in August 2025 had suggested a potential shift in policy, with reports indicating that China might allow private companies to issue yuan-pegged stablecoins. However, by September of that year, the government instructed issuers to pause such activities. In a related development, January 2026 saw the PBOC authorizing commercial banks to pay interest on digital yuan wallets, enhancing the appeal of the CBDC among investors.
This latest move reflects China's strategic focus on its CBDC, reinforcing its commitment to maintaining control over digital currency issuance and usage within its borders.