The post Can Stablecoins Thrive Without China? appeared on BitcoinEthereumNews.com.

China has again made its position on stablecoins unmistakably clear. At a recent financial policy forum, Pan Gongsheng, governor of the People’s Bank of China (PBoC), described stablecoins as a “new source of vulnerabilities” within the global financial system. He warned that they could undermine smaller economies’ monetary sovereignty and enable illicit financial flows. According to him, these assets “amplify loopholes in global financial regulation, such as money laundering, illegal cross-border fund transfers, and terrorist financing.” He also stressed that most stablecoin projects fail to meet basic compliance standards such as customer identification and anti-money-laundering checks. His remarks reaffirm China’s decade-long stance: private digital currencies and stablecoins remain off-limits, even as Beijing continues to advance its digital yuan (e-CNY) as a state-controlled alternative. Yet as the rest of the world accelerates toward tokenized finance, China’s absence raises the pressing question of whether stablecoins can truly thrive without the world’s largest fintech economy. A global market moving without Beijing For now, the answer appears to be yes. While China doubles down on restrictions, global stablecoin adoption has surged. According to DeFiLlama data, the sector’s total capitalization recently crossed $308 billion, expanding by nearly $100 billion since January. At the same time, a report from A16z shows that the sector’s transaction volumes surpassed $46 trillion over the past year, rivaling established payment giants such as Visa when adjusted for legitimate activity. Stablecoins Volume (Source: A16z) Chris Dixon, a partner at venture capital firm A16z, said: “Stablecoins have gone mainstream. [They] have found product-market fit, rivaling the world’s largest payment networks in transaction volume.” This milestone is unsurprising considering that governments across Asia, which once echoed Beijing’s caution, are moving in the opposite direction. Japan has legalized fiat-backed stablecoins this year, with fintech firm JPYC Inc. launching the first fully compliant yen-denominated token…

---

Filed under: News - @ October 30, 2025 1:32 pm