The global stablecoin market – estimated at approximately $308 billion–is at a crossroads, as China’s hardline regulatory stance threatens its viability and global reach. While digital assets like stablecoins have become critical infrastructure for payments and decentralized finance, Beijing’s ban on cryptocurrency activity raises critical questions regarding their growth potential and global reach.
China’s Stand on Cryptocurrencies
The People’s Bank of China (PBOC) has reiterated a firm ban on all forms of cryptocurrency trading, mining and private ownership.
CoinLaw
and InvestingLiveBoth contain details.
In October 2025, China’s Peoples Bank of Commerce warned of risks posed by offshore stablecoins to both monetary sovereignty and financial stability. manca InvestingLive Chinese regulators ordered brokers not to promote stablecoins or related research. By contrast, in November 2025 they directed brokers not to promote stablecoins or associated research at all. Reuters
China has issued an official ban against private stablecoin issuance and any crypto asset regime not under state control, according to information available from Arkm.com.
China maintains its domestic ban, yet other jurisdictions are pushing ahead. For example, the West–especially the U.S.–has recently passed the GENIUS Act which creates a regulatory framework aimed at permitting stablecoins to operate under clear rules.
Wikipedia But will stablecoins survive outside China’s influence?
Yes – at least in the short run. A recent industry report suggests that China may no longer dominate, and markets would welcome further development beyond their participation.
CryptoSlate
Stablecoins have quickly become an indispensable element in decentralized finance, powering exchanges, tokenized bonds and on-chain commerce platforms alike. No longer confined to fringe tech usage, stablecoins have now become integral parts of modern finance.
Though not completely optimistic, China remains the second-largest economy and a key global trade centre; therefore its exclusion means stablecoins lack access to its massive pool of users, payments infrastructure and cross-border trade networks – one analyst notes “without China stablecoins lose one of the largest pools for fintech innovation and trade settlement”. And as CryptoSlate notes:
China may be absent but is certainly not silent.
Although they remain banned in China, Chinese users and firms still access dollar-pegged stablecoins via overseas markets and OTC desks despite this ban, indicating that even stringent regulation cannot completely quell demand for stablecoins. This also shows how even when regulation aims at suppressing stablecoins entirely it fails.
China is also considering changing course: permitting yuan-backed stablecoins to promote international use of the renminbi. If implemented, this would mark a dramatic reversal in policy – potentially with serious ramifications for stakeholders and market players alike. Reuters correspondant +1
Stablecoin issuers and operators facing restrictions from China should turn their focus towards markets with clearer regulations and momentum building – such as those under the GENIUS Act in the U.S. For investors, China’s absence adds a “China risk” discount: its absence implies missing scale but potentially safer regulatory environments.
Regulators around the world must balance innovation with risk: stablecoins offer efficiency while raising concerns over monetary sovereignty, capital flows and fraud. China has taken an approach which emphasizes state control over market expansion.
Longer View
Stablecoins appear resilient. Although not dependent upon China to survive, global scale may be severely limited without Chinese integration. China may continue its isolation or initiate controlled entry via state-align Yuan stablecoins; until then, market will function with one major economy on the sidelines.
How well the market reaches its $2 trillion potential by 2028 will depend on how China reacts. If their policy remains closed, stablecoins may adapt around it, while selective opening could create new growth frontiers. Either way, the $308 billion question still stands: can stablecoins thrive rather than simply survive China’s ban?
