CHINA The End of Private Stablecoins and the War for Capital Control

[Igor Pereira]

The Chinese government has just made the definitive move to cement its monetary monopoly.

The People's Bank of China (PBOC), together with seven other agencies, issued a joint warning expressly prohibiting the issuing of Stablecoins linked to Yuan and Tokenization of Real Assets (RWA) without government authorization.

By Igor Pereira Financial Market Analyst

This is not just crypto regulation; it is a measure of desperate capital control to prevent money from escaping and force the adoption of the Yuan Digital (e-CNY). Below is the analysis of what this means for the market.

The warning is comprehensive and aggressive.

• Target: The ban affects not only domestic entities, but also their Offshore subsidiaries (on the outside). If a Chinese company tries to issue a token in Singapore or Hong Kong linked to Yuan, it will be prosecuted.

• Illegality: The central bank emphasized that these digital assets do not have legal course status and that any related activity is classified as "illegal financial operation".

• RWA: The tokenization of real-world assets (such as real estate or commodities in blockchain) is now considered "illegal fundraising" if it does not pass through the state-designated financial infrastructure.

Market analysts hit the spot: the movement is designed for prevent capital leakage.

• The Trap: With the Chinese economy pressed, wealthy investors try to take money out of the country using cryptocurrencies and stablecoins. By banning these vehicles, the government closes the escape routes.

• Monopoly: They want to keep the state monopoly on digital currency. The Yuan Digital (e-CNY) is traceable and controllable. Private Stablecoins (like a hypothetical USDT-CNY) are not.

• The Justification: They quote "significant risks to financial stability" and "risk prevention", but real reading is National Security and Social Stability. They do not want speculation; they want financial obedience.

If you're a Chinese citizen and the government forbids you from buying Crypto or Stablecoins to protect your assets, what's left?

• The Answer: Physical gold.

• The Flow: That explains the insane awards we saw at JD.com ($5.720/oz) recently. With digital capital output routes being closed today, the demand for "untrustworthy" physical assets within China will explode even more. Gold is the only battery of wealth left when the blockchain is banned.

China is accelerating the integration of its sovereign currency while destroying decentralised competition.

My Vision: This reinforces our thesis that the world is dividing.

1. Crypto: The crypt market in China ended for the private sector. RWA projects focused on Asia will suffer.

2. Gold: This repression may be fuel for the price of physical gold in Asia in the long run. If they close the doors on one side, an investment must come from the other;

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