China launches digital yuan cross-border platform, warns on stablecoins

PBOC Calls for Closer Monitoring of Stablecoins in Cross-Border Payments

A senior People’s Bank of China official used the 2026 Lujiazui Forum in Shanghai on Tuesday to call for enhanced surveillance of stablecoins in international transactions, warning that privately issued digital currencies could play an increasingly prominent role in global payment networks.

Stablecoins Demand Regulatory Attention, Official Says

Wang Xin, director-general of the PBOC’s Research Bureau, told attendees that policymakers must pay close attention to how stablecoins affect the international monetary system and cross-border payment infrastructure. He urged stronger international coordination to address the challenges posed by both stablecoins and central bank digital currencies operating across borders.cryptonews

“We also need to pay attention to some new aspects,” Wang said, referring to stablecoins and CBDCs. He added that “the role of stablecoins in cross-border payments, as well as future regulatory and international coordination arrangements, deserves continued attention.”cryptonews

The remarks came alongside the launch of the Cross-border e-CNY Transfer Services platform, known as CBETS, which signed agreements with 26 financial institutions to facilitate low-cost international settlements using the digital yuan.cryptopolitan

Domestic Crackdown, Hong Kong’s Parallel Path

Wang’s comments arrive months after Beijing expanded its cryptocurrency restrictions in February 2026, when the PBOC and seven co-signatories issued a joint notice explicitly banning the unauthorized overseas issuance of yuan-linked stablecoins and placing tokenized real-world assets under tight supervision. Regulators said RMB-pegged stablecoins “perform some functions of fiat currency during circulation and use, directly impacting monetary sovereignty.”caixinglobal

While the mainland maintains its blanket prohibition on private stablecoins, Hong Kong has moved in the opposite direction. The Hong Kong Monetary Authority granted stablecoin issuer licenses to HSBC and Anchorpoint Financial Limited in April under the territory’s Stablecoins Ordinance, which took effect in August 2025. Licensed Hong Kong stablecoins are expected to launch as early as mid-2026, according to the city’s Financial Services Secretary.info

Balancing Innovation and Control

The dual approach — promoting a state-controlled digital currency internationally while suppressing private alternatives domestically — underscores Beijing’s broader strategy of maintaining monetary sovereignty. The CBETS platform connects participating banks across Thailand, Laos, the United Arab Emirates, Qatar, Brazil, Hong Kong, and Macao, positioning the digital yuan as China’s preferred vehicle for cross-border settlement.cryptopolitan

Wang’s call for multilateral coordination signals that Beijing views unregulated stablecoin growth not merely as a domestic enforcement challenge but as a systemic issue requiring collective action among central banks and international bodies.cryptonews