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China\u2019s central bank is paying closer attention to stablecoins as privately issued digital currencies take on a potentially larger role in the international monetary system and cross-border payments.<\/p>\n
Wang Xin, director general of the Research Bureau at the People\u2019s Bank of China (PBOC), urged<\/a> authorities to closely monitor the impact of stablecoins while improving international coordination and regulation, Chinese news outlet The Paper reported on Wednesday.\u00a0<\/p>\n \u201cWe also need to pay attention to 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,\u201d Wang reportedly said, according to a machine translation.\u00a0<\/p>\n He also warned that growing uncertainty and a potential weaponization of payments could disrupt normal cross-border transactions.\u00a0<\/p>\n The remarks reflect growing attention among Chinese regulators to the potential role of stablecoins in cross-border payments and the international monetary system.<\/p>\n Related: <\/strong><\/em>Chinese court treats Bitcoin as property in 107 BTC memory theft case<\/strong><\/em><\/a><\/p>\n While Wang advocated for stronger oversight and cautious exploration, he did not endorse stablecoins or announce policy changes.\u00a0<\/p>\n In addition to stablecoins, Wang warned about central bank digital currencies (CBDCs). He said the role of CBDCs in cross-border payments also warrants closer observation, along with improved policy cooperation.\u00a0<\/p>\n Wang\u2019s remarks 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.\u00a0<\/p>\n The rules applied to foreign and domestic entities<\/a> and covered onshore and offshore versions of the yuan, requiring issuers to obtain government approval, reinforcing China\u2019s preference for state-controlled digital money over privately issued tokens.<\/p>\n Stablecoin market cap dropped back to $315 billion after rising to as high as $322 billion. Source: DefiLlama<\/em><\/p>\n Stablecoins account for a growing share of digital asset market activity. In the first quarter of 2026, the overall stablecoin supply grew by about $8 billion<\/a> to reach $315 billion for the first time, according to data from CEX.io.<\/p>\n CEX.io said that stablecoin transaction volume exceeded $28 trillion in the quarter, while representing 75% of the total crypto trading volume. Despite this, CEX.io estimated that bots generated roughly 76% of the transaction volume.<\/p>\nChina\u2019s stablecoin scrutiny comes amid rapid growth<\/h2>\n