China Forbids Domestic and Foreign Firms from Issuing RMB Stablecoins and Tokenized Assets

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China’s central bank, the People’s Bank of China (PBOC), alongside seven other key agencies, unveiled a joint statement on Friday prohibiting the issuance of Renminbi-pegged stablecoins and tokenized real-world assets (RWAs) without formal approval.

The ban is universal, targeting both domestic companies and foreign entities that might issue such digital instruments. The significant policy declaration was also signed by the Ministry of Industry and Information Technology and the China Securities Regulatory Commission, among others.

The official statement, in translation, left little room for interpretation regarding the authorities’ view of stablecoins:

“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.”

Commenting on the development, Winston Ma, an adjunct professor at New York University (NYU) Law School and a former Managing Director of China’s sovereign wealth fund, CIC, told Cointelegraph that the prohibition extends to all versions of the Chinese currency. He clarified that it encompasses stablecoins tied to both the onshore Renminbi and the offshore yuan.