China’s Central Bank reaffirmed its approach towards virtual currencies, warning of the risks and maintaining financial order.
On Oct. 27, Pan Shenggong, Governor of China’s Central Bank, made a statement at the 2025 Financial Street Forum Annual Conference in Beijing. He stated that since 2017, the central bank, in conjunction with relevant departments, has issued a series of policies to prevent and manage the risks associated with domestic virtual currency trading and speculation. “Currently, these policy documents remain in effect,” he emphasised.
“Next, the central bank will continue cracking down on the operation and speculation of virtual currencies within the country, maintaining economic and financial order,” said Pan. At the same time, China will closely track and dynamically assess the development of stablecoins abroad.
Worldwide Concern
“Stablecoins are still in their early stages of development,” said Pan, noting that financial regulators worldwide still maintain a cautious stance towards the development of virtual currencies.
Pan specifically pointed out that at the IMF and World Bank Annual Meetings 10 days ago, stablecoins and their potential financial risks became one of the most discussed topics among central bank governors and finance ministers from various countries.
The more common view is that stablecoins fail to effectively meet the basic requirements of customer identity verification and anti-money laundering now. It magnifies the loopholes in global financial regulation.
The atmosphere of market speculation and hype is strong, which has increased the vulnerability of the global financial system. It has also posed a threat to the monetary sovereignty of some less developed economies, Pan added.
At the same time, Pan said, China’s Central Bank will optimise the management system of China’s digital yuan, allowing more commercial banks to participate in the operation.
Written by Yetao Gu, additional reporting by CNS.
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