Overview

• An article from the CF40 think tank published Zhou Xiaochuan’s closed-door remarks urging vigilance that excessive stablecoin use could drive speculation, fraud and financial instability.
• Zhou argued China’s existing rails such as Alipay, WeChat Pay and the digital yuan already meet domestic needs, warning large-scale token use could erode capital controls and destabilize markets.
• Reuters has reported that the State Council is reviewing a roadmap for yuan-pegged stablecoins, with Hong Kong and Shanghai expected to fast-track adoption if plans advance.
• Analysts say any yuan token would be ring-fenced offshore because of capital controls, positioning Hong Kong’s licensing regime, effective August 1, as the primary testing ground.
• Economists note stablecoins may offer advantages for cross-border use versus the e‑CNY due to interoperability, as a global stablecoin supply near $270 billion heightens policy pressure.