China's central bank has moved to strengthen monitoring and regulation, targeting the possibility that stablecoins could expand their role in cross-border payments.

Cointelegraph, a blockchain outlet, reported on Tuesday that Wang Xin (왕신), director general of the People's Bank of China (PBOC) Research Bureau, said the impact of stablecoins on the international monetary system and cross-border payment and settlement should be examined closely.

Wang named stablecoins directly as an area authorities should pay new attention to. He said they should examine whether stablecoins will play a more important role in cross-border payments, and how regulation, international coordination and cooperation should proceed accordingly. He did not express support for stablecoins or signal a policy shift, but it was read as a sign that Chinese regulators are raising their level of vigilance.

Wang also mentioned the possibility that payment tools could be weaponised. He warned that if uncertainty grows and payments are weaponised, normal cross-border transactions could be shaken. It showed Chinese authorities are aware that stablecoins could go beyond being a tool within the cryptocurrency market and link up with external payment structures.

China has already institutionalised tighter controls on privately issued digital assets. The PBOC and seven agencies on Feb. 6 banned the unauthorised issuance of yuan-linked stablecoins and real-world asset (RWA) products. The rules applied to institutions both inside and outside China and also covered onshore and offshore yuan versions. Issuers must obtain government approval, reaffirming China's existing stance of preferring state-controlled digital currency over private tokens.

Wang showed the same awareness of the issue regarding central bank digital currencies (CBDCs). He said the cross-border payment role of CBDCs also requires closer observation and that policy cooperation should be strengthened as well. He was pointing out that coordination issues could grow if not only privately issued stablecoins but also state-led digital currencies enter international payment networks.

Market size was also presented as a backdrop that is heightening such vigilance. According to CEX.io figures, total stablecoin supply in the first quarter of 2026 rose by about $8 billion to reach $315 billion for the first time. Transaction volume during the quarter exceeded $28 trillion and accounted for 75 percent of total cryptocurrency trading volume. CEX.io estimated, however, that about 76 percent of the total volume was generated by bots.

Stablecoin market capitalisation once rose to $322 billion before falling back to around $315 billion. As supply and trading share grow quickly, China appears to be prioritising checks on spillover effects on cross-border payments and the international monetary system over market expansion itself. As a result, China's future focus is expected to be on further regulatory work on privately issued stablecoins and on how to manage digital assets and CBDCs in cross-border payments.