The People's Bank of China (PBOC) has called for closer monitoring of the impact of stablecoins on the international monetary system and cross-border payments. This was stated by the head of the regulator's research bureau, Wang Xin, local media report. According to him, the international payment infrastructure should become safer, more neutral and more efficient, while central bank settlement systems and retail networks should interact better with one another. Wang Xin also urged studying the potential of new instruments «cautiously and steadily», improving regulation and strengthening coordination among countries. «It is necessary to closely monitor the impact of stablecoins on the international monetary system and cross-border payments», he said. Payments as the infrastructure of trade Wang Xin's remarks were made at the plenary session «Reform and Cooperation in Global Financial Governance» of the annual financial forum in Shanghai. He linked the topic of payments to sustainable development and international investment. According to the PBOC representative, cross-border financing requires efficient and diverse payment infrastructure. It should support global trade, investment and economic growth. However, the current system, Wang Xin noted, faces growing uncertainty and is turning into an instrument of pressure. In this context the central bank proposes to monitor whether stablecoins will start playing a more important role in cross-border settlements, as well as to study the use of CBDCs beyond national markets. Cryptocurrency policy and the digital yuan Mainland China still maintains strict restrictions on cryptocurrency operations. In 2021 the authorities banned mining and limited the participation of banks and payment organizations in bitcoin transactions. Later regulators confirmed the illegal status of cryptocurrency operations and separately pointed to the risks of stablecoins. Against this backdrop, the development of payment innovation in the country mainly proceeds through the digital yuan ( e-CNY), banking infrastructure and regulated channels. According to Reuters, on June 16 the International Operations Center for the Digital Yuan, opened in September 2025, signed direct participation agreements with 26 financial organizations in Shanghai. Participants will be able to connect to the integrated platform for cross-border settlements Cross-border e-CNY Transfer Services. It is meant to provide round-the-clock digital payment links with foreign central banks and overseas financial institutions. The next day PBOC governor Pan Gongsheng announced new measures to develop the offshore yuan in Shanghai, the agency reported. Six large state-owned banks, including Bank of China and China Construction Bank, were granted the right to conduct offshore yuan operations in the Shanghai free trade zone. The PBOC also created the FIMA RMB Repo tool. It will allow foreign central banks and sovereign funds to obtain liquidity in the national currency against the collateral of high-quality Chinese bonds. According to Reuters, in this way China is strengthening the internationalization of the yuan, seeking to reduce dependence on the global payment system dominated by the US dollar. Recall that in August 2025 Reuters sources reported that the Chinese government is considering allowing the use of yuan-backed «stablecoins».

Source: ForkLog