China’s central bank is paying more attention to stablecoins as privately issued digital currencies potentially play a larger role in the international financial system and cross-border payments.
Wang Xin, Director General of the Research Bureau at the People’s Bank of China (PBOC); Emphasized Chinese news agency The Paper reported on Wednesday that authorities will keep a close eye on the impact of stablecoins while improving international coordination and regulation.
“We also need to focus on several new areas, such as whether stablecoins will play a more important role in cross-border payments, and how regulation, international coordination and cooperation should proceed,” Wang reportedly said, according to a machine translation.
He also warned that increased uncertainty and potential weaponization of payments could disrupt normal cross-border transactions.
The remarks reflect the growing attention of Chinese regulators to cross-border payments and the potential role of stablecoins in the international financial system.
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While Wang advocated strong monitoring and careful exploration, he did not endorse stablecoins or announce policy changes.
In addition to stablecoins, Wang warned about central bank digital currencies (CBDCs). He said that the role of CBDCs in cross-border payments also warrants closer observation with better policy support.
China’s stablecoin testing comes amid rapid growth.
Wang’s comments come months after the PBOC and seven other Chinese agencies banned the unauthorized issuance of renminbi-pegged stablecoins and tokenized real-world assets on Feb. 6.
The rules apply to foreign and domestic entities and cover onshore and offshore versions of the yuan, requiring issuers to obtain government approval, reinforcing China’s preference for state-controlled digital money over privately issued tokens.
Stablecoin’s market cap fell back to $315 billion after rising to $322 billion. Source: DefiLlama
Stablecoins account for a growing share of digital asset market activity. According to data from CEX.io, in the first quarter of 2026, the total stablecoin supply increased by almost $8 billion to reach $315 billion for the first time.
CEX.io said stablecoin transaction volume exceeded $28 trillion this quarter, representing 75% of total crypto trading volume. Nevertheless, CEX.io estimated that bots generated about 76% of transaction volume.
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