China Central Bank Governor: Blockchain is Catalyzing Stablecoin Innovation and Transforming Cross-Border Payments
June 18, 2025— The Governor of the People’s Bank of China (PBoC) has highlighted blockchain technology as a pivotal force reshaping global financial systems, particularly in the realm of stablecoins and cross-border transactions. Speaking at the Digital Finance Forum in Shanghai, the governor emphasized that blockchain is accelerating the development of stablecoins while driving the modernization of international payment systems.
China Central Bank Governor: Blockchain Enabling Real-Time Settlements
According to the China Central Bank Governor, blockchain’s core advantages—transparency, immutability, and decentralized verification—are laying the groundwork for a new era in financial infrastructure. “Blockchain enables near-instantaneous settlement across borders, eliminating the delays and intermediaries embedded in traditional correspondent banking networks,” he stated.
This shift has far-reaching implications for remittances, international trade, and digital asset markets. The governor noted that blockchain-based payment rails can significantly reduce costs and settlement times, especially for countries that face financial exclusion or high transaction fees under legacy systems.
Stablecoins on the Rise
The China Central Bank Governor also pointed to the rapid evolution of stablecoins as a direct result of blockchain innovation. These digital assets—designed to maintain a stable value, typically pegged to fiat currencies—are increasingly being adopted for both domestic and international transactions.
“Stablecoins, especially those that are well-regulated and fully backed, are emerging as credible tools for cross-border commerce,” he said. He also acknowledged that government-backed initiatives like China’s Digital Yuan and private-sector experiments with regulated stablecoins are helping shape this new monetary frontier.
Regulatory and Risk Considerations
While optimistic about the potential, the governor cautioned that the rise of blockchain-based financial instruments brings new regulatory challenges. These include safeguarding financial stability, preventing illicit activities, and ensuring consumer protection.
“Cross-border flows of stablecoins require coordination between jurisdictions to avoid regulatory arbitrage, systemic risks, and data privacy concerns,” he warned. He advocated for global regulatory frameworks that strike a balance between fostering innovation and maintaining oversight.
The PBoC is reportedly engaging in discussions with other central banks and financial institutions to explore interoperable systems and shared standards for blockchain-based payments. The governor called for international collaboration to ensure technological advancements align with global financial stability goals.
Conclusion
China’s central bank continues to embrace a proactive stance toward digital finance, with blockchain and stablecoins seen as key components in the evolution of monetary systems. As the technology matures, regulators around the world will need to collaborate closely to navigate the risks and unlock the full potential of decentralized financial infrastructure.
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