As reported by Jinse, recent statements from China's central bank and seven industry associations highlight the risks of virtual currencies and the need for stablecoin regulation. At the 2025 Financial Street Forum, PBOC Governor Pan Gongsheng emphasized the optimization of the digital RMB management system. The article explores the evolving global monetary landscape, where stablecoins, CBDCs, and projects like mBridge are redefining currency issuance, settlement, and sovereignty. It explains the distinction between central bank money and commercial bank liabilities, and how digital RMB is designed to replace cash (M0) without disrupting the existing banking system. Meanwhile, mBridge aims to enable cross-border settlements without relying on the dollar or SWIFT. The rise of dollar stablecoins, such as USDT and USDC, is also analyzed, highlighting their role in expanding the reach of the U.S. dollar and the regulatory challenges they pose to countries like China.
Digital RMB, Stablecoins, and the Evolving Global Monetary System
JinseShare
Summary
At the 2025 Financial Street Forum, PBOC Governor Pan Gongsheng outlined plans to strengthen the digital RMB management system. China’s central bank and seven industry groups warned of virtual currency risks and the need for stablecoin oversight. The move ties into broader efforts around CFT, as regulators monitor cross-border flows in liquidity and crypto markets. Digital RMB aims to replace cash without upending the banking system. Meanwhile, mBridge seeks to bypass the dollar and SWIFT in global settlements. The growth of dollar stablecoins, like USDT and USDC, raises regulatory concerns in China and beyond.
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