China’s central bank is paying closer attention to stablecoins as privately issued digital currencies gain a larger role in cross-border payments.
Speaking at the Lujiazui Forum on June 17, Wang Xin, director-general of the Research Bureau of the People’s Bank of China (PBOC), said policymakers should closely monitor the effect of stablecoins on the international monetary system and cross-border payments. He also called for stronger regulatory rules and international coordination.
Wang’s remarks came during a session on global financial governance and cooperation. He argued that international payment infrastructure needs to become more secure, neutral and efficient as cross-border investment and trade expand. He also warned that geopolitical tensions and the possible use of payment networks as strategic tools could disrupt international transactions.
Stablecoins are becoming a policy issue beyond crypto
Wang’s comments do not amount to an endorsement of private stablecoins. Instead, they show why central banks are taking them more seriously.
Stablecoins can move value across borders without relying entirely on traditional banking rails. That can reduce settlement times and give businesses access to payment infrastructure that operates outside normal banking hours.
The same features create regulatory questions. A stablecoin used across several jurisdictions can involve issuers, exchanges, banks and payment providers that fall under different rules. Regulators must then consider how reserves are managed, how transactions are monitored and which authority is responsible when something goes wrong.
That helps explain Wang’s focus on international coordination. A payment instrument that operates globally cannot be supervised effectively through one country’s rules alone.
China is watching the technology while restricting domestic use
The PBOC’s interest in stablecoins should not be confused with a relaxation of China’s domestic crypto restrictions.
Earlier this year, Chinese regulators reinforced restrictions covering cryptocurrency activities and renminbi-linked stablecoins. The framework reflects concerns that privately issued digital currencies could affect monetary control, financial stability and anti-money-laundering enforcement.
China’s position therefore has two parts. Beijing is restricting private crypto activity at home while studying how stablecoins could affect the international payment system.
That distinction matters because stablecoins are increasingly becoming part of the infrastructure used for global digital-asset trading and cross-border transfers. China’s policymakers have an incentive to understand that infrastructure even while limiting its domestic use.
Hong Kong is taking a different regulatory route
Hong Kong provides a useful contrast. The Hong Kong Monetary Authority’s Stablecoins Ordinance took effect on August 1, 2025, creating a licensing regime for fiat-referenced stablecoin issuers. The HKMA began accepting applications that month and said it would set a high bar for licences.
By April 2026, the HKMA had announced the first two licensed stablecoin issuers. The authority has also continued developing rules for financial institutions dealing with stablecoins issued by licensed entities.
The contrast is significant. Mainland China is focused on controlling the risks posed by privately issued digital money, while Hong Kong is testing whether those assets can operate inside a tightly supervised financial framework.
Hong Kong is also developing tokenized deposits and central bank money through projects such as EnsembleTx, which is designed to support digital-asset settlement.
For China, that makes stablecoins both a technology to monitor and a potential challenge to established payment infrastructure.
Wang’s remarks suggest Beijing wants a stronger voice in that international discussion. Hong Kong’s licensing framework shows another route: permit controlled stablecoin activity while keeping issuers and intermediaries under regulatory supervision.
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