China is ramping up its focus on stablecoin regulations amid rising geopolitical tensions and fragmentation in international markets, both of which are increasing pressure on the global financial infrastructure. Wang Xin, head of the research department at the People’s Bank of China, addressed the importance of transforming financial governance and strengthening multilateral cooperation in his speech at the 2026 Lujiazui Forum on June 17.
Emphasis on secure and neutral payment systems
According to Wang Xin, the international payments system must adopt stronger security standards, operate independently of political influence, and achieve higher operational efficiency in order to support global trade and economic growth. He added that the link between central bank-operated payment infrastructure and end-user payment platforms should also be reinforced. The People’s Bank of China continues to act as the country’s lead agency for monetary policy and financial stability.
Wang Xin stressed that a more secure, neutral, and efficient international payment ecosystem is crucial for healthy global trade.
Wang stated that sustainable economic development depends heavily on robust cross-border capital flows and financing activities. This requires diverse and uninterrupted payment channels for transferring funds overseas. He warned that today’s infrastructure is becoming increasingly fragile, making it more vulnerable to political disruptions.
Noting the deepening divisions in the global financial system, Wang cautioned that payment networks risk being used as political tools, which could disrupt even routine international transactions. He urged closer coordination among monetary authorities, financial regulators, and multilateral organizations to address these challenges.
Call for a comprehensive stablecoin framework
Wang highlighted that stablecoins could play a much larger role in international payments in the future. However, he insisted that the impact of these assets on the global monetary system and payment infrastructure must be carefully evaluated in advance. The Chinese government supports the creation of comprehensive regulatory standards before the widespread adoption of digital assets.
Glossary: A stablecoin is a digital asset whose value is typically pegged to the US dollar or another fiat currency. A central bank digital currency (CBDC) is a digital form of money issued directly by a central bank.
Wang also called for detailed policy discussions on central bank digital currencies. He noted these instruments could significantly transform processes involved in cross-border payments and bank-to-bank coordination. Because stablecoins serve as both payment tools and are issued by private companies, they present particularly complex challenges for regulators.
Wang Xin noted that stablecoins could have greater influence in international payments, making it essential to address their implications for the global monetary order early on.
Chinese authorities have previously tightened oversight of crypto asset-based payment tools. In February, a broadened regulatory scope brought renminbi-pegged stablecoins and tokenized real-world assets under greater scrutiny. The framework now prohibits the unauthorized issuance of renminbi-backed stablecoins outside mainland China.
Appeal for more international institutional support
Wang also urged global financial institutions to expand their support programs for emerging economies. He highlighted the need to allocate more funding, improve representation in governance, and accelerate quota reforms. He suggested that multilateral development organizations should modernize their management structures and operational procedures.
China ties these institutional changes to climate finance needs and sustainable development goals. The country points out that many developing economies require better access to funding mechanisms, technical support, and more resilient payment infrastructures. Wang called on international organizations to prioritize capacity-building and financial inclusion in their future work.
By contrast, Hong Kong is taking a different approach by introducing an official licensing framework for stablecoin issuers. These regulations apply to operators in Hong Kong and certain stablecoins denominated in the Hong Kong dollar. On the mainland, however, strict restrictions on cryptocurrency exchanges, digital mining, and unauthorized asset tokenization remain firmly in place.
