China’s Central Bank Calls for Tighter Cross-Border Stablecoin Oversight and Global Cooperation
Stablecoins, most of which are pegged to fiat currencies such as the U.S. dollar, have expanded beyond crypto-asset trading into cross-border settlement. Their growing role has implications for capital flows, monetary sovereignty and sanctions risks. The People’s Bank of China is concerned that privately issued currencies could amplify the “weaponization of payments” and disrupt transactions, while regulation also requires countries to coordinate their payment and foreign-exchange regimes.
On June 17, 2026, Wang Xin, head of the PBOC’s Research Bureau, said authorities should closely monitor stablecoins’ impact on the international monetary system and cross-border payments and strengthen international regulatory cooperation. Data cited in the report showed stablecoin supply at about $315 billion in the first quarter of 2026, with quarterly transaction volume exceeding $28 trillion. China had also banned unauthorized yuan-denominated stablecoins and real-world asset tokens in February that year.
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The history behind this eventU.S. and UK Plan to Bring Stablecoins Into Cross-Border Payments
Stablecoins have become an important medium in digital finance as blockchain technology has spread. But the lack of harmonized national rules has left cross-border payments facing high compliance costs and fragmented oversight. Integrating regulated stablecoins into the traditional cross-border financial system could significantly improve international settlement efficiency. It would also be a key step toward broader institutional adoption of tokenized assets, unlocking global liquidity and modernizing market infrastructure.
The U.S. and UK finance ministries jointly issued recommendations through the Transatlantic Taskforce for Markets of the Future on July 14, 2026, outlining a 10-point road map for regulatory coordination. They agreed that stablecoin issuers must provide backing of at least 1:1 with high-quality reserve assets and segregate those assets to protect holders. The initiative is intended to coordinate rules among regulators including the U.S. Securities and Exchange Commission, the Commodity Futures Trading Commission, the UK Financial Conduct Authority and the Bank of England.
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