China bans unapproved RMB stablecoins and tokenized RWAs for all
The People’s Bank of China (PBOC) and seven regulatory agencies issued a joint statement on Friday prohibiting the unauthorized issuance of Renminbi-pegged stablecoins and tokenized real-world assets (RWAs) by both domestic and foreign entities.
The statement, co-signed by the Ministry of Industry and Information Technology and the China Securities Regulatory Commission, said: “Stablecoins pegged to fiat currencies perform some of the functions of fiat currencies in disguise during circulation and use. No unit or individual at home or abroad may issue RMB-linked stablecoins without the consent of relevant departments.”
Winston Ma, an adjunct professor at New York University School of Law and former managing director at China Investment Corporation, said the measure covers both the onshore and offshore versions of the Renminbi. “The Beijing crypto ban rule applies across all RMB-related markets, whether CNH or CNY,” he said. He added that CNH is the offshore Renminbi used to provide flexibility in foreign exchange markets while preserving capital controls.
Ma said the decision is part of a multi‑year effort to keep speculative crypto assets outside the formal financial system while accelerating adoption of e‑CNY, the central bank’s digital currency.
The announcement comes after authorities approved commercial banks to share interest with holders of the digital yuan, China’s central bank digital currency (CBDC).
China briefly weighed yuan-linked stablecoins before prioritizing the CBDC
In August 2025, reports indicated that authorities were considering allowing private firms to issue yuan-pegged stablecoins, signaling a potential policy shift.
However, in September of the same year, the government tightened restrictions on stablecoin and digital asset issuance, instructing issuers to pause or suspend trials until further notice.
In January 2026, the PBOC authorized commercial banks to pay interest on digital yuan wallets to enhance the appeal of the CBDC to users.
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