PBoC Spots Stablecoins Sneaking Into the SWIFT Gap — Regulators Now Squinting 🇨🇳

China's central bank is sharpening its focus on stablecoins as privately issued digital currencies take on a potentially larger role in the international monetary system and cross-border payments. Wang Xin, director general of the Research Bureau at the People's Bank of China (PBOC), said authorities should closely monitor the impact of stablecoins while improving international coordination and regulation, Chinese news outlet The Paper reported on Wednesday. "We also need to pay attention to several new areas, such as whether stablecoins will play a more important role in cross-border payments, and how regulation, international coordination and cooperation should proceed," Wang said, according to a machine translation. He also warned that growing uncertainty and a potential weaponization of payments could disrupt normal cross-border transactions.

The remarks reflect growing attention among Chinese regulators to the potential role of stablecoins in cross-border settlements and the international monetary system. While Wang advocated for stronger oversight and cautious exploration, he did not endorse stablecoins or announce policy changes. Beyond stablecoins, Wang said central bank digital currencies (CBDCs) also warrant closer observation in cross-border payments, along with improved policy cooperation.

Wang's comments come months after the PBOC and seven other Chinese agencies banned the unauthorized issuance of renminbi-pegged stablecoins and tokenized real-world assets on Feb. 6. The rules apply to foreign and domestic entities and cover onshore and offshore versions of the yuan, requiring issuers to obtain government approval and reinforcing China's preference for state-controlled digital money over privately issued tokens.

The scrutiny follows rapid growth in the stablecoin market. Stablecoin market capitalization dropped back to $315 billion after rising to as high as $322 billion, according to DefiLlama. In the first quarter of 2026, overall stablecoin supply grew by about $8 billion to reach $315 billion for the first time, according to data from CEX.io. CEX.io reported that stablecoin transaction volume exceeded $28 trillion in the quarter, representing 75% of the total crypto trading volume, though the platform estimated that bots generated roughly 76% of that transaction volume.