Former Deputy Governor of the People's Bank of China Discusses Cryptocurrencies

In recent years, cryptocurrencies and digital assets have become the subject of intense debate in the financial world. In this context, Wang Yongli, former Deputy Governor of the People's Bank of China (PBOC), shared his thoughts on China's current stance on cryptocurrencies and the development of the digital yuan (e-CNY). His comments highlight the country's dual approach to regulating virtual currencies and supporting innovation in the financial sector.

China's Tough Stance on Cryptocurrencies

Wang Yongli noted that China maintains a tough stance on cryptocurrencies, reflecting the government's desire to control the financial system and minimize the risks associated with illegal activity. He emphasized that despite the active development of the digital yuan, restrictions on the use of cryptocurrencies will continue. This indicates that Chinese authorities have no intention of relaxing their measures to combat fraud and speculation related to virtual currencies.

Digital Yuan Development

At the same time, Wang noted that the People's Bank of China actively supports the development of the digital yuan. He stated that, starting in May 2025, the United States and Hong Kong began intensifying legislative initiatives on stablecoins and cryptoassets. This, in his view, creates the need for China to reconsider its approach to stablecoins and continue developing the digital yuan.

Wang emphasized that the People's Bank of China (PBOC) has announced its intention to optimize the digital yuan's position in the monetary system, improve its governance mechanism, and actively support its development. This demonstrates that China is striving to take a leading position in the field of digital currencies, despite its strict policy towards cryptocurrencies.

Stablecoin Discussions

During discussions at the PBOC, stablecoins were defined as a type of virtual currency. Wang Yongli noted that at a meeting held on November 28 with 13 organizations, it was emphasized that the restrictive policy regarding virtual currencies will be maintained. This underscores that, despite interest in stablecoins, China does not intend to loosen its grip on the cryptocurrency market.

China's Dual Approach

According to Wang, current events clearly demonstrate China's dual approach to cryptocurrency policy. On the one hand, the country actively supports the development of the digital yuan, which could lead to its widespread adoption both domestically and internationally. On the other hand, strict measures to combat illicit financial activities related to virtual currencies will be maintained.

The Importance of Innovative Development

Wang also emphasized the crucial importance of accelerating the innovative development and widespread adoption of the digital yuan. This will not only improve China's financial system but also strengthen its position internationally. Amid global competition in the digital currency space, China is striving to create an efficient and secure ecosystem for its digital assets.

In Conclusion

Thus, Wang Yongli's comments highlight China's complex and multifaceted policy regarding cryptocurrencies and digital assets. The country continues to maintain a hardline stance against cryptocurrencies while actively developing the digital yuan. This creates a unique situation in which China seeks to establish a leading position in digital currencies while maintaining strict control over the financial system.