Latest Central Bank statement: Crackdown on virtual currencies, steady development of Digital RMB

The 2026 Central Bank Work Conference just concluded, sending a very clear signal — regulation of virtual currencies is tightening, but the development of digital RMB is accelerating. This seemingly contradictory policy combination actually reflects the central bank’s true attitude towards financial digitalization: it should be digital, but within a regulated framework.

The Central Bank’s Policy Double Play

According to the latest news, the central bank work conference emphasized two seemingly opposing directions. On one hand, “strengthening virtual currency regulation and continuing to crack down on related illegal activities” was listed as a key task; on the other hand, “steadily developing digital RMB” was also explicitly proposed. This is not policy wavering, but a precise distinction.

Why are virtual currencies being strictly crackdown

Virtual currencies here refer to decentralized crypto assets like Bitcoin, Ethereum, etc. The central bank’s strict regulation logic is straightforward: these assets lack oversight, are easily used for money laundering, and may threaten financial stability. From the conference statements, “continuing to crack down on related illegal activities” means regulators will focus on illegal activities involving virtual currencies, rather than on holding virtual currencies themselves.

At the same time, the conference also mentioned “strict implementation of penetrating supervision of payment institutions,” which means third-party payment platforms facilitating virtual currency transactions are also within the scope of regulation.

Why is digital RMB embraced

Digital RMB (e-CNY) is different. It is a legal currency issued by the central bank, with a clear issuer, total supply control, and regulatory framework. The central bank listing it as a “steady development” direction indicates that this is a financial innovation encouraged.

According to relevant information, Vice President of Beijing Academy of Social Sciences Fan Wenzhong recently wrote that digital RMB is collaborating with Hong Kong’s compliant stablecoins to explore a new paradigm for cross-border payments. This shows that the central bank is not only promoting digital RMB domestically but also strategically deploying internationally, aiming to expand the cross-border coverage of digital RMB and enhance the internationalization of the RMB.

The underlying policy logic

This set of policies reflects the core understanding of the central bank:

The central bank’s real goal is not to oppose digitalization but to control its direction. The unregulated expansion of virtual currencies could undermine the effectiveness of monetary policy and financial stability, so regulation is necessary; digital RMB, as a controllable digital path led by the central bank, is to be developed.

Practical market implications

This policy signal has several key implications:

• The trading environment for virtual currencies may tighten further, especially the channels for fiat currency exchange
• However, holding and trading virtual currencies themselves will not be completely banned; the regulatory focus is on cracking down on illegal activities
• The application scenarios for digital RMB will continue to expand, gradually moving from pilot programs to nationwide deployment
• The future payment ecosystem will be “multi-coexistence”: digital RMB, third-party payments, and virtual currencies will each have their place, but digital RMB will be the main driver promoted by the authorities

From an international perspective, this is also a trend. Central banks around the world are advancing their digital currency initiatives, while generally maintaining a cautious attitude towards decentralized crypto assets. This statement from the central bank aligns China’s path within this global trend.

Summary

This “one strict, one steady” combination from the central bank work conference actually conveys a simple truth: financial digitalization is an inevitable trend, but it must occur within an orderly and controllable framework. Virtual currencies represent disorderly, decentralized directions, so regulation is necessary; digital RMB represents an orderly, central bank-led direction, so it should be developed. For ordinary people, this means future payments and asset allocations will become more diverse, but digital RMB will gradually become mainstream. For virtual currency investors, it calls for more cautious assessment of policy risks.