PBOC and 7 Regulators Outlaw Unapproved Yuan Digital Assets
The People’s Bank of China (PBOC), alongside seven other state agencies including the China Securities Regulatory Commission, issued a joint statement on Friday banning the unapproved issuance of stablecoins pegged to the Renminbi. The prohibition extends to tokenized real-world assets (RWAs) and applies to all issuers, whether domestic or foreign. This regulatory action formalizes China's hardline stance against private digital currencies operating parallel to its sovereign financial system.
The directive explicitly targets any digital token that performs currency-like functions without state approval. The ban's scope includes both the onshore yuan (CNY) and its offshore counterpart (CNH), effectively shutting down all avenues for private yuan-backed tokens. This is a deliberate step to wall off the formal financial system from crypto-related speculation while aggressively promoting the state-controlled alternative.
This is the latest step in a multi‑year project: Keep speculative crypto outside the formal financial system, while actively promoting the usage of e-CNY, the sovereign CBDC issued by China's central bank.
— Winston Ma, Adjunct Professor, NYU Law School
State Reverses Course After August 2025 Stablecoin Signal
This ban marks a definitive end to a brief period of policy ambiguity. In August 2025, reports indicated that Beijing was contemplating allowing private firms to issue yuan-pegged stablecoins, a move that would have represented a significant policy reversal. However, by September 2025, authorities had already instructed stablecoin issuers to pause or terminate their trial programs, signaling a swift change in direction.
The government's strategy is now clearly focused on its own central bank digital currency (CBDC). In January 2026, the PBOC authorized commercial banks to offer interest on digital yuan holdings. This incentive was designed to increase the e-CNY's appeal to consumers and investors, directly competing with and now officially displacing any potential private market solutions.
