📰 China’s Central Bank Reaffirms Strict Stance on Crypto & Stable coins
China’s central bank (PBOC) has once again clarified its position on digital assets — and it’s not positive for private cryptocurrencies or stable coins. In a multi-agency meeting, the PBOC emphasized that all crypto-related activities remain illegal, reinforcing its commitment to regulatory crackdowns and promoting only the state-backed Digital Yuan (e-CNY).
🧵 Key Points You Need to Know
1️⃣ Crypto Still Not Recognized as Legal Money
The PBOC stated that virtual currencies do not share the legal status of fiat currency and all related activities fall under illegal financial operations.
2️⃣ Stable coins Marked as a High-Risk Area
Regulators flagged stable coins as a “primary concern”, highlighting AML weaknesses, identity risks, and their use in fraud or cross-border capital movement.
3️⃣ Enforcement to Intensify Further
Authorities plan to:
Block payment channels
Monitor suspicious flows
Crack down on illegal crypto operation
Strengthen oversight of stable coin activity
4️⃣ Only One Digital Currency Is Welcome: e-CNY
China continues to aggressively push its Digital Yuan (CBDC) and rejects all private digital assets and stable coins.
🧠 My Take: No, China Is NOT “Banking on Crypto”
Despite rumors, China is not shifting toward crypto support. Instead, the strategy is clear:
Support their own CBDC (e-CNY)
Suppress all private crypto & stable coins
Protect capital controls and financial stability
Any claims suggesting China is “returning to crypto” are likely misinterpretations or outdated speculation.
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