The People’s Bank of China (PBOC) and seven Chinese regulatory agencies issued a joint statement banning the unapproved issuance of Renminbi‑pegged stablecoins and tokenized real‑world assets (RWAs). The prohibition covers both domestic and foreign issuers and was signed by agencies including the Ministry of Industry and Information Technology and the China Securities Regulatory Commission.
The announcement warned that stablecoins pegged to fiat “perform some of the functions of fiat currencies in disguise during circulation and use,” and declared that no domestic or overseas entity may issue RMB‑linked stablecoins without approval from relevant authorities.
Winston Ma, adjunct professor at NYU Law School and former managing director at China’s sovereign wealth fund, said the ban applies to both onshore (CNY) and offshore (CNH) versions of the Renminbi. He described the move as part of a multi‑year effort to keep speculative crypto activity outside the formal financial system while promoting the central bank’s digital currency, the e‑CNY.
The decision follows months of policy shifts. In August 2025, reports suggested China was considering allowing private issuance of yuan‑pegged stablecoins, signaling a potential policy reversal. By September 2025, however, regulators ordered issuers to pause or halt stablecoin trials. In January 2026, the PBOC took steps to increase the appeal of the digital yuan by permitting commercial banks to pay interest on digital yuan wallets.
The joint statement makes clear that unapproved RMB‑linked stablecoins and tokenized RWAs are prohibited across all RMB‑related markets, reinforcing China’s focus on sovereign digital currency development and strict oversight of private digital‑asset initiatives.
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