Market News

China's Digital Yuan Strategy: Balancing Crypto Opposition with Innovation

Former Deputy Governor of the People's Bank of China, Wang Yongli, has clarified China's firm opposition to cryptocurrencies while endorsing the advancement of the digital yuan (e-CNY).

In a recent WeChat post, Wang articulated that the country's monetary policy regarding cryptocurrencies is now unequivocally defined.

He highlighted the acceleration of stablecoin and digital asset regulations in the US and Hong Kong since May 2025, alongside America's controversial attempts to limit the digital dollar's issuance.

This global regulatory environment has ignited substantial discussions in China about promoting RMB stablecoins and the ongoing development of the digital yuan.

Wang pointed out a significant meeting convened by the People's Bank of China, establishing that stablecoins are classified as virtual currencies and affirming the continuation of stringent regulations against them.

His remarks illustrate China's dual strategy: backing the growth of the digital yuan while maintaining strict control over illicit activities connected to cryptocurrencies.

Wang emphasized the necessity for the digital yuan to pioneer unique strengths, particularly in international payment systems.

He urged for accelerated innovative development to ensure the digital yuan achieves widespread acceptance both within China and across borders.

This approach not only aims to solidify China's position in the cryptocurrency landscape but also seeks to cultivate a distinct trajectory in the digital currency arena.

As these developments unfold, the world will closely watch how China navigates the complexities of digital finance.