PBOC Notice No. 42 bans unauthorized RMB-pegged stablecoins onshore and offshore, shutting down Ant Group and JD.com's plans while expanding e-CNY with interest-bearing features.
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The People's Bank of China, joined by seven other regulatory agencies, issued Notice No. 42 on February 6, 2026. The directive bans the issuance of RMB-pegged stablecoins without explicit government approval. That applies both onshore and offshore, covering every channel a private firm might have tried to exploit.
The notice extends the prohibitions China established in September 2021, when authorities banned virtual currency transactions and mining. The new language specifically targets yuan-denominated stablecoins.
Throughout 2025, speculation swirled that Chinese firms might issue offshore yuan-backed stablecoins, particularly through Hong Kong. Ant Group and JD.com were reportedly preparing for that scenario. Hong Kong's own Stablecoin Ordinance took effect in August 2025, creating what looked like a regulatory on-ramp. The PBOC intervened to halt yuan-related stablecoin issuance plans before they could gain traction, people familiar with the matter said.
The notice also reaches into real-world asset tokenization, reinforcing the government's position that private virtual currencies carry no legal tender status in China.
Cumulative e-CNY transaction volume reached approximately 16.7 trillion yuan, roughly $2.3 trillion, by the end of November 2025. Interest-bearing features for e-CNY accounts launched in January 2026, adding a financial incentive that traditional cash and most stablecoins cannot match. Additional banks have been brought into the system to expand access.
For firms like Ant Group and JD.com, the message is clear. Any digital currency ambitions must run through state channels. The fintech giants that once seemed poised to become major players in the stablecoin space will instead need to align their strategies with the e-CNY framework, or risk regulatory consequences.
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