Former Vice President of the Bank of China, Wang Yongli, recently published an article with a straightforward title—“Why Has China Firmly Halted Stablecoins?” In the article, he makes it very clear: the accelerated push by regulators for the digital yuan goes hand-in-hand with a tough stance against stablecoins. This line has already been drawn firmly.

Why take this approach? Wang Yongli offers a multi-dimensional explanation—China is already a global leader in mobile payments, and the digital yuan pilot has proven successful. At this point, there’s no need to leave any room for stablecoins, and concerns over monetary sovereignty and the stability of the financial system must be taken into account.

He breaks it down into five aspects:

First, USD stablecoins have already dominated the market, leaving little room for stablecoins based on other fiat currencies.

Second, the US legislative framework is essentially self-serving, and could even backfire on the entire stablecoin ecosystem.

Third, if China were to push for a renminbi-based stablecoin, it would have no real competitive advantage and could even create hidden risks—there are real concerns over sovereign currency and financial security.

Fourth, when stablecoins are used alongside other virtual currencies, risks like cross-border money laundering and fraud in the black market become glaringly obvious.

Fifth, China’s mobile payment and digital yuan infrastructure is already solid enough, so there’s no need to follow the USD stablecoin route.

In summary: Don’t follow, don’t get involved, stick to our own path.