๐ The People's Bank of China (PBOC) announced a ban on unapproved issuance of stablecoins pegged to the yuan and tokenized real-world assets (RWA).
๐ก This regulation applies to both domestic and foreign issuers, highlighting China's stance on cryptocurrencies.
๐ The announcement was a result of months of uncertainty regarding privately issued stablecoins pegged to the yuan.
๐ฐ The ban applies to both domestic and offshore versions of the yuan, known as CNY and CNH respectively.
โ๏ธ This step is part of a broader strategy to keep speculative cryptocurrencies outside the formal financial system while promoting the use of e-CNY, China's central bank digital currency (CBDC).
๐ In January 2026, the PBOC allowed commercial banks to offer interest on digital yuan wallets, increasing the attractiveness of CBDC.
๐ The Chinese government briefly considered allowing private issuance of stablecoins but refocused on the development of CBDC.
๐ The testing of stablecoins was suspended in September 2025, indicating a strict regulatory environment for digital assets in China.