China Urges Closer Watch on Stablecoins in Global Payment Systems

TLDR

• China urges stronger stablecoin oversight in global payment networks

• PBOC official says stablecoins may reshape cross-border payments

  

• China calls for tighter rules on stablecoins and CBDC coordination

• Stablecoins draw new scrutiny from China’s central bank officials

• China links stablecoin risks to global payment system resilience

China signaled stronger attention to stablecoins as global payment systems face rising pressure from geopolitical risk and financial fragmentation. Wang Xin, director of the Research Bureau at the People’s Bank of China, addressed the issue on June 17. He spoke during the 2026 Lujiazui Forum session on global financial governance reform and cooperation.

China Links Payment Reform to Global Financial Stability

Wang said international payments need stronger security, neutrality, and efficiency to support trade and development. He also called for better links between central bank payment systems and retail payment networks. China framed payment reform as a core part of global financial governance.

He said sustainable development requires large cross-border investment and financing flows. These flows need efficient and diverse payment systems to move funds across borders. Current payment channels face uncertainty and growing geopolitical use.

China has increased attention on payment infrastructure as global finance becomes more fragmented. Wang said normal cross-border transactions could face disruption when payment networks become political tools. As a result, he urged stronger coordination among central banks, regulators, and international institutions.

Stablecoins Raise New Questions for Cross-Border Payments

Wang said stablecoins may play a larger role in future cross-border payments. He said policymakers must assess their impact on the international monetary system and payment networks. China wants stronger rules before these instruments gain deeper global use.

He also pointed to central bank digital currencies as another area for further policy observation. Their cross-border use could reshape settlement systems and central bank cooperation. Stablecoins continue to test existing rules because they combine payment functions with private issuance.

China has already tightened its rules around crypto-linked payment tools. In February, regulators widened restrictions to cover RMB-linked stablecoins and tokenized real-world assets. The framework barred unauthorized issuance of renminbi-linked stablecoins outside mainland China.

China Calls for Stronger Multilateral Support

Wang also said international financial institutions should expand support for developing economies. He urged stronger financial resources, better representation, and faster quota reforms. In addition, he said multilateral development banks should improve governance and operating processes.

China linked these reforms to climate finance and sustainable development needs. Many developing countries require funding, technical support, and stronger payment channels. Therefore, global institutions should help build capacity and improve access to finance.

Hong Kong has taken a separate path by building a licensing system for stablecoin issuers. Its rules cover issuers operating in Hong Kong and certain Hong Kong dollar-linked stablecoins. However, mainland China has maintained strict controls over crypto trading, mining, and unauthorized tokenization.

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