Former Bank of China Vice President Wang Yongli's recent article emphasizes China's firm stance against stablecoins to protect the sovereignty and stability of the renminbi. This policy highlights China's focus on the digital yuan amidst the dominance of USD stablecoins, impacting global crypto market dynamics and emphasizing monetary sovereignty concerns.
China's Policy on Stablecoins and Digital Yuan Development
Wang Yongli's article stresses China's intent to accelerate digital yuan initiatives, citing concerns over USD stablecoins, which have an overwhelming global market share. By stopping stablecoins, China aims to maintain control over its financial ecosystem.
The emphasis on the digital yuan as a state-backed currency illustrates intentions to sideline privately issued stablecoins, perceived as threats to sovereignty and monetary stability. Experts note that this policy might limit international competition and reinforce domestic control.
Reactions within financial markets have been muted. While China's stance reinforces its existing policy path, the direct impact on USD stablecoin volumes seems limited, given their dominance. However, the statement has reaffirmed China's commitment to its centralized digital currency over private alternatives.
Wang Yongli, Former Vice President, Bank of China, “China’s policy orientation to accelerate the development of the digital yuan and resolutely curb virtual currencies, including stablecoins, has become completely clear.”
Strategic Implications for Global Stablecoin Markets
China's strategy to restrict stablecoins aligns with its 2021 e-CNY White Paper, identifying private stablecoins as risks to sovereign monetary systems.
Tether USDt (USDT) maintains its position at a stable price of $1.00, reflecting a market cap of $185.70 billion and a 24-hour trading volume of $96.30 billion. Price fluctuations remain marginal, with a monthly increase of 0.04%, reported by CoinMarketCap as of 04:01 UTC, Dec. 6, 2025.
Insights suggest that China's emphasis on the digital yuan could fortify its monetary control, potentially affecting global stablecoin adoption. This move underscores the country's strategic financial alignments to defend its currency sovereignty.