Submitted by Cointelegraph,

The People’s Bank of China (PBOC), the country’s central bank, and seven Chinese regulatory agencies published a joint statement on Friday banning the unapproved issuance of Renminbi-pegged stablecoins and tokenized real-world assets (RWAs).

The ban applies to both domestic and foreign stablecoin and tokenized RWA issuers, according to the statement, which was also signed by the Ministry of Industry and Information Technology and China’s Securities Regulatory Commission. A translation of the announcement said:

“Stablecoins pegged to fiat currencies perform some of the functions of fiat currencies in disguise during circulation and use. No unit or individual at home or abroad may issue RMB-linked stablecoins without the consent of relevant departments.”

Winston Ma, an adjunct professor at New York University (NYU) Law School and former Managing Director of CIC, China's sovereign wealth fund, told Cointelegraph that the ban extends to the onshore and offshore versions of China’s Renminbi, also called the yuan.  

“The Beijing crypto ban rule applies across all RMB-related markets, whether CNH or CNY,” he said. CNH is the offshore version of the Renminbi, designed to give the currency flexibility in foreign exchange markets, without sacrificing currency controls, Ma said.

“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,” he said.

The announcement follows the Chinese government approving commercial banks to share interest with clients holding the country’s digital yuan, a central bank digital currency (CBDC) managed by state authorities

Chinese government briefly considered yuan-pegged stables, but focused on CBDC instead

In August 2025, reports began circulating that China’s government was considering allowing private companies to issue yuan-pegged stablecoins, a major reversal of long-standing policy. 

However, the Chinese government restricted stablecoin and digital asset issuance in September of that same year, instructing stablecoin issuers to pause or halt their stablecoin trials until further notice.

In January 2026, the PBOC approved commercial banks paying interest to digital yuan wallets in a push to make the CBDC more attractive to investors.