Chinese regulators have reportedly ordered firms to halt stablecoin promotions, research, and events. This move aims to slow the rising excitement around stablecoins, which authorities fear could be exploited for fraud. Sources told Bloomberg on August 8 that the order included canceling seminars and stopping the release of related research materials.
Stablecoin Events and Research Ordered to Stop
According to people familiar with the matter, the directive came from Chinese financial regulators. It targeted companies involved in stablecoin-related activities, especially public events and marketing campaigns. While no public statement has been issued, the move follows a July 7 warning from the Shenzhen Municipal Task Force for Preventing and Combating Illegal Financial Activities.
That earlier warning stated that unauthorized entities were using stablecoin-related terms to promote unlawful investment schemes and raise funds illegally. Authorities said these schemes misled citizens and created risks for investors. It was reported at the time that such activities were tied to growing buzz about possible yuan-backed digital assets.
Officials have expressed concern that stablecoins, without proper oversight, could be used in money laundering or scams. The latest restrictions appear aimed at curbing market hype before such activities become widespread.
Ongoing Interest in a Yuan-Pegged Stablecoin
Despite the clampdown, reports suggest China is still exploring a yuan-pegged stablecoin. A Financial Times article indicated that internal discussions on a potential launch have increased. The government is reportedly seeking expert input on the best way to issue and manage such a currency.
Insiders claim the goal is to create a stablecoin pegged to the renminbi as part of efforts to reduce reliance on the U.S. dollar in global trade. This comes as Hong Kong moves forward with its stablecoin ordinance and the United States advances new crypto legislation. These developments may be influencing a review of China’s strict stance on digital assets.
China-based companies such as JD.com and Ant Group are also said to be lobbying the People’s Bank of China (PBOC) to authorize stablecoin issuance. These firms argue it would help expand the renminbi’s international reach.
Digital Yuan Development Continues
While work on a yuan-pegged stablecoin remains unofficial, progress on China’s central bank digital currency (CBDC) is ongoing. The digital yuan, or e-CNY, is already being tested in several regions. Earlier this year, PBOC Governor Pan Gongsheng announced plans to establish an international operations center for the currency in Shanghai.
Officials say the aim is to promote a “multi-polar” currency system that is less dependent on the U.S. dollar. The e-CNY project is seen as a key part of that strategy. The latest measures on stablecoin promotions do not appear to affect CBDC development.
For now, there is no confirmed timeline for any yuan-backed stablecoin launch. However, the reported internal discussions, combined with the active CBDC program, suggest China’s interest in digital currencies remains strong even as it works to prevent market misuse.
