China supports state-controlled digital currency but tightens restrictions on private cryptocurrencies like Bitcoin and stablecoins. The country is leading in the development of central bank digital currency (CBDC), with ambitions to enhance domestic financial control and elevate the global status of the yuan.

The Chinese government bans trading and mining of Bitcoin and other cryptocurrencies to mitigate financial risks and control capital flows. Meanwhile, China promotes the digital yuan, viewing it as a tool to strengthen monetary sovereignty, reduce dependence on the Western financial system (especially the USD), and enhance monitoring of cash flows in the economy.