China’s central bank has doubled down on its ban against cryptocurrency trading while accelerating the rollout of its state-backed digital currency.

Info via Caixin report.

Speaking at the Financial Street Forum in Beijing, People’s Bank of China (PBOC) Governor Pan Gongsheng said existing restrictions on virtual currency activity remain firmly in place and will continue to be enforced in coordination with other authorities. He also warned that offshore stablecoins pose potential systemic risks, citing global regulatory concerns over compliance, money laundering, and consumer protection.

Pan noted that discussions at the recent IMF/World Bank meetings in Washington were dominated by stablecoin risks, with policymakers warning that such tokens could undermine monetary sovereignty in developing economies and amplify global financial instability.

In contrast, Pan highlighted the safety and regulatory clarity of China’s central bank digital currency, the digital yuan, which he described as fully backed and supervised by the PBOC. After years of pilot projects, China has established a broad ecosystem for the digital yuan and plans to bring more commercial banks on board as operational partners.

To support this expansion, the PBOC has launched two new facilities — an international operations centre in Shanghai to manage cross-border transactions and a management hub in Beijing to oversee infrastructure and development — strengthening Beijing’s ambitions to cement its status as a leading financial hub.

China’s renewed crypto crackdown and expansion of the digital yuan underscore Beijing’s determination to maintain control over digital finance. The move could dampen sentiment in offshore crypto markets while advancing China’s influence in the global race for central bank digital currencies.