Where will the market go when the central bank first weighs the dollar

Author:Cai Peng ChengI don't knowTitanic Media

Editor: Yoon Xue Liu, titanium media

 

On 29 November, the People ' s Bank of China published an official article entitled " Meeting of the Coordination Mechanism for Combating Virtual Currency Exchanges " , on the issue of virtual currency andStable currencyAn update was provided。

The article introduced the most recent adjustment of the currency of stability, which “is a form of virtual currency that is currently unable to effectively meet customer identification, anti-money-laundering, etc., and risks being used in illegal activities such as money-laundering, fund-raising fraud and the irregular cross-border transfer of funds”

A WELL-KNOWN WEB 3 TRADE LAWYER MENTIONED TO THE CHINESE-LANGUAGE NETWORK IN BARONE THAT “STABILIZATION IS A FORM OF VIRTUAL CURRENCY. THIS IS THE FIRST TIME THAT AN OFFICIAL OFFICIAL DOCUMENT HAS CLEARLY DEFINED A STABLE CURRENCY AND DIRECTLY INCORPORATED IT INTO THE REGULATORY FRAMEWORK OF `ILLEGAL FINANCIAL ACTIVITIES OF VIRTUAL CURRENCY'. IT ESSENTIALLY NEGATES THE DISCUSSION OF STABLE CURRENCIES IN THE INTERIOR.”

He added that such a statement would not directly affect Hong Kong ' s stable currency market, but would have indirect effects, and that Mainland institutions would be more cautious and less inclined to move to Hong Kong。

The text reads as follows:

On 28 November 2025, the People ' s Bank of China held a meeting on coordination mechanisms to combat virtual currency trading. The Ministry of Public Security, the Central Network Office, the Central Financial Office, the Supreme People ' s Court, the Supreme People ' s Procuratorate, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Justice, the People ' s Bank of China, the General Directorate for the Supervision of the National Market, the General Directorate for the Supervision of State Finance, the China Certification and Inspection Board and the State Foreign Exchange Office are responsible for the participation of gays。

The Conference noted that in recent years the various units have been following up on the implementation of the decision-making arrangements of the Party Central and State Council, and that, as called for in the 2021 Circular on Further Prevention and Handling of Risks from Firing Virtual Currency Transactions, issued jointly by the People ' s Bank of China and 10 other departments, a determined effort has been made to combat virtual currency transactions and to correct the phenomenon of virtual currency disorder, with tangible results. In the recent past, virtual currency speculation has increased, with related criminal activities taking place, and risk prevention and control facing new situations and challenges。

It was emphasized that virtual currency does not have the same legal status as statutory currency, is not reimbursable and should not and cannot be marketed as currency and that virtual currency-related operations are illegal financial activities. Stable currency is a form of virtual currency that is currently unable to effectively meet customer identification and anti-money-laundering requirements, and there is a risk that it will be used for illicit activities such as money-laundering, fund-raising fraud and irregular cross-border transfers of funds。

The Conference called on all units to continue to be guided by the socialist ideology of China in the new era of Xi Jinping, to fully implement the 20th and 20th plenary sessions of the Party, to make risk prevention and control a permanent theme of financial work, to continue to maintain a policy of prohibition of the virtual currency and to continue to combat the illegal financial activities associated with it. The units will deepen their coordination, improve their regulatory policy and legal frameworks, focus on priority areas such as information flows and financial flows, strengthen information-sharing, further enhance their monitoring capacity, severely combat criminal activities, protect the property of the population and maintain economic and financial stability。

Since this year, as mentioned in the above-mentioned article, there have been numerous cases of fund-raising fraud under the banner of a stable currency. Financial regulators in Shenzhen, Beijing, Suzhou and Zhejiang, for one time, issued a high-intensity risk alert to illegal financial activities with emerging concepts such as “stable currency”。Ant GroupI don't knowKyotoOther companies have also published rumours of stable currency fraud in their companies。

In recent months, discussions and events on the currency of stability have been very active, and the following are not fully streamlined:

In June this year, a number of Internet giants and listed companies announced that they would apply for stabilization plates in Hong Kong. On 18 June, the President of the People ' s Bank of China, Ban Kung-sung, delivered a keynote address at the 2025 Luk Jia Forum, which dealt with the stabilization currency:

“Emerging technologies, such as block chains and distributed books, drive central banks to develop digital currency, stabilize currency booms, achieve “payment or settlement” and reshape traditional payment systems from the bottom, significantly reducing cross-border payment chains, while posing enormous challenges to financial regulation. The evolution and development of cross-border payment systems will also be continuously facilitated by technologies such as smart contracts and decentrization of finance.”

On 10 July, the Shanghai National Investment Commission held a central group learning session on trends and coping strategies in encrypted and stable currencies. In the same month, multiple financial regulators issued intensive risk alerts involving currency stabilization。

On 1 August, Hong Kong ' s Stabilisation Currency Ordinance came into force, providing a clear regulatory framework and a path to license applications for stable currency distributors. In the same month, foreign sources quoted sources as saying that China was considering allowing the use of the renminbi-supported stabilization currency for the first time in order to promote its wider use worldwide。

ON 27 OCTOBER, AT THE ANNUAL MEETING OF THE 2025 FINANCIAL STREET FORUM, PAN KUNG-SUNG STATED THAT FINANCIAL ADMINISTRATIONS SUCH AS INTERNATIONAL FINANCIAL ORGANIZATIONS AND CENTRAL BANKS WERE GENERALLY CAUTIOUS ABOUT THE DEVELOPMENT OF A STABLE CURRENCY. HE NOTED THAT, AT THE ANNUAL MEETINGS OF THE INTERNATIONAL MONETARY FUND (IMF) AND THE WORLD BANK, THE STABILIZATION OF CURRENCIES AND THE POSSIBLE FINANCIAL RISKS THAT THEY MAY POSE WERE AMONG THE TOPICS MOST DISCUSSED BY NATIONAL FINANCE MINISTERS AND CENTRAL BANK GOVERNORS, AND THAT THE MORE GENERAL VIEW WAS THAT CURRENCY STABILIZATION, AS A FINANCIAL ACTIVITY, WAS NOT EFFECTIVE AT THE CURRENT STAGE IN MEETING THE BASIC REQUIREMENTS OF CUSTOMER IDENTIFICATION, ANTI-MONEY-LAUNDERING, AND THAT IT MAGNIFIED LOOPHOLES IN GLOBAL FINANCIAL REGULATION, SUCH AS MONEY-LAUNDERING, IRREGULAR CROSS-BORDER TRANSFERS OF FUNDS, TERRORIST FINANCING, ETC., AND A HIGHLY SPECULATIVE ATMOSPHERE IN THE MARKET, INCREASED THE VULNERABILITY OF THE GLOBAL FINANCIAL SYSTEM AND HAD AN IMPACT ON THE MONETARY SOVEREIGNTY OF SOME LESS DEVELOPED ECONOMIES。

From a global perspective, on 7 November, Japan officially stated that the Japanese Government had decided to support a joint project by the three Japanese banks to launch a stabilization currency. The Japanese start-up company JPYC has launched the first global stabilization currency to be supported by the Japanese yen, with 1 JPYC fixed to exchange 1 yen at a price, with Japanese yen deposits and Japanese government bonds as assets supporting the Japanese yen. Prior to September, nine European banks (including ING, KBC, Danske Bank) had formed EuroStabilization Consortiums, which planned to issue monitored EuroStandards for cross-border payments. In July, Trump quickly signed a genius bill establishing a stable currency regulatory framework。

 

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