China’s Central Bank Calls Stablecoins a ‘Threat,’ Vows Crackdown: Report

China’s central bank has issued one of its strongest warnings yet against stablecoins, calling them a threat to global financial stability and vowing to tighten its crackdown on domestic cryptocurrency ￰4￱ at the 2025 Financial Street Annual Meeting in Beijing, Pan Gongsheng, governor of the People’s Bank of China (PBoC), said that stablecoins , digital assets pegged to fiat currencies like the U. S. dollar, have created new vulnerabilities in the global financial system and could undermine the monetary sovereignty of smaller ￰5￱ for the Annual Conference of Financial Street Forum 2025, Beijing, October 26, 2025.) requirements. “Stablecoins, as a form of financial activity, still cannot meet the basic requirements of financial supervision,” Pan told the conference.

“They expose loopholes that can facilitate illegal fund transfers, terrorist financing, and money laundering.” Pan said the central bank would continue to work closely with law enforcement to crack down on cryptocurrency operations and speculative activities within mainland ￰6￱ described the measures implemented by the PBoC in recent years as “effective,” reaffirming the country’s zero-tolerance policy toward private digital ￰7￱ has maintained a sweeping ban on crypto trading, mining, and exchange operations since 2017, citing financial risks and the potential for consumer ￰8￱ PBoC has consistently positioned digital assets as a threat to economic order while promoting the state-backed digital yuan (e-CNY) as a safer ￰9￱ also said the central bank would “closely monitor and assess the development of stablecoins in overseas markets,” suggesting that the PBoC remains wary of how foreign stablecoin growth could influence China’s financial ￰10￱ warning comes amid growing global debate over the rapid expansion of the stablecoin ￰11￱ Economists Warn USD Stablecoin Growth Threatens Yuan Internationalization According to data from blockchain analytics firm DefiLlama, the total market capitalization of stablecoins has reached about $308 billion, with Tether (USDT) and USD Coin (USDC) accounting for nearly 87% of the supply.) system that underpins much of the American banking network.) and World Bank Annual Meetings in Washington, D.

C., global finance ministers and central bank governors raised concerns about the systemic risks posed by ￰12￱ officials echoed Pan’s comments, saying the tokens fall short of basic AML and know-your-customer (KYC) standards and could enable illicit financial ￰13￱ in China have also voiced concerns that the global rise of U. S. dollar-backed stablecoins could weaken the country’s financial ￰14￱ Yongli, a former deputy governor of the Bank of China, wrote in June that the dominance of USD-pegged stablecoins “poses a strategic challenge” to the renminbi’s ￰15￱ Bank of China deputy governor urges a mainland policy shift to counter the growing influence of dollar-linked stablecoins and explore offshore digital yuan models. #china #stablecoin #cbdc ￰0￱ — ￰16￱ (@cryptonews) June 3, 2025 He warned that if the digital yuan cannot compete with the efficiency and global reach of these tokens, China’s efforts to promote its currency abroad could face “serious obstacles.” Wang urged the government to accelerate the rollout of the e-CNY and explore the possibility of an offshore yuan-denominated stablecoin through Hong ￰17￱ Blocks Tech Giants’ Stablecoin Ambitions as Hong Kong Opens Licensing Regime The issue has also touched China’s major tech ￰18￱ this month, Ant Group and ￰19￱ paused their plans to issue stablecoins in Hong Kong following reported instructions from the PBoC and the Cyberspace Administration of China.

China's Ant Group and ￰1￱ have paused their Hong Kong stablecoin plans after Beijing signalled that private firms should not issue currency-like tokens. #AntGroup #JD. com #Stablecoins ￰2￱ — ￰20￱ (@cryptonews) October 20, 2025 Officials reportedly told both firms to suspend their projects to prevent private companies from issuing tokens that function like money, arguing that the right to issue currency must remain with the ￰21￱ Kong, however, has moved in the opposite ￰22￱ August, the city introduced one of the world’s first dedicated stablecoin licensing regimes , inviting applications from major financial institutions and blockchain ￰23￱ Hong Kong Monetary Authority (HKMA) has already received expressions of interest from more than 40 companies , including Ant Group, JD.

com, Circle, and Standard ￰24￱ Hong Kong positions itself as a global digital asset hub, Beijing’s stance remains ￰25￱ August, Chinese regulators ordered brokerages and think tanks to halt the publication of reports or seminars that promote stablecoins , citing fraud and speculative ￰26￱ financial regulators have instructed local brokerages to halt publishing studies or hosting seminars that promote stablecoins. #China #Stablecoins ￰3￱ — ￰27￱ (@cryptonews) August 8, 2025 Pan’s latest remarks reinforce that Beijing’s long-standing crypto policy is unlikely to soften ￰28￱ emphasized that while blockchain technology holds promise, its application must “operate within strict regulatory boundaries.” “Virtual assets and their derivatives must never undermine financial stability or monetary sovereignty,” he said.

“The People’s Bank of China will continue to act decisively to safeguard economic and financial order.”