Opinion: Why Has China Decisively Halted Stablecoins?

Wang Yongli argues that China has decisively halted stablecoins, prioritizing digital RMB development while suppressing virtual currencies, and that promoting RMB stablecoins offers little advantage. He points to a November 28 joint meeting of the PBOC and 12 other departments, which stated that stablecoins are a form of virtual currency and that their issuance and trading are illegal. Wang, who previously served as Vice President and Executive Director of Bank of China, says U.S. dollar stablecoins dominate over 99% of the global stablecoin market, leaving little room for non-USD stablecoins. He also argues that U.S. stablecoin legislation, which took effect July 18, may ultimately undermine the stablecoin industry itself.