China Accelerates Digital RMB Development as US and Hong Kong Push Stablecoin Legislation

Policy makers in the United States and Hong Kong have advanced stablecoins and digital assets legislation since May 2025, including proposals to restrict a digital dollar, signaling a global regulatory wave.

Within China, attention has shifted to the digital RMB and potential RMB stablecoins as authorities weigh policy direction; the PBOC aims to optimise the digital renminbi’s position in the monetary stack and strengthen its management framework.

In late November, the PBOC and 13 other agencies convened a Coordination Mechanism Meeting to curb virtual currency speculation, reaffirming that stablecoins fall under virtual currency regulations and maintaining a firm stance against illicit financial activity linked to crypto markets.

Wang Yongli emphasises accelerating digital RMB innovation and broad adoption, domestically and internationally, to secure a competitive edge in cross-border payments and advance China’s leadership in digital currency development.