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PBoC (People's Bank of China)

Central bank

The People's Bank of China is mainland China's central bank and the operator of the world's most operationally advanced retail central bank digital currency, the e-CNY (also known as the digital renminbi or DC/EP). PBoC sits at the centre of the Chinese tokenisation regulatory architecture, with the e-CNY infrastructure as the principal bank-money-on-chain plumbing in the mainland Chinese financial system, the mBridge cross-border CBDC pilot programme as the operational footprint for cross-border PBoC-coordinated tokenised settlement work (under post-graduation governance since mid-2024), and the broader mainland stablecoin policy as the structural anchor for the prohibition on private-sector RMB stablecoin issuance in mainland China. For an APAC tokenisation operator, PBoC is the central-bank counterparty for any RMB-denominated tokenised activity in mainland China and the policy counterparty whose stance on cross-border RMB tokenisation activity is the structurally distinctive piece in the broader Asia tokenisation map.

Role in tokenisation

PBoC's tokenisation surface has three load-bearing components. First, the e-CNY infrastructure. PBoC operates e-CNY as a retail central bank digital currency through a two-tier issuance model, with PBoC as the principal issuer and the four largest Chinese state-owned commercial banks (ICBC, Bank of China, China Construction Bank, Agricultural Bank of China) plus selected other commercial banks as the operating banks that distribute e-CNY to retail and corporate users. The e-CNY infrastructure has been operationally live since 2020 in pilot scope and has been progressively expanded across multiple Chinese cities and use cases, with the consolidated transaction volume figure not in current raw entries.

Second, mBridge cross-border CBDC participation through the PBoC Digital Currency Institute. PBoC was a founding participant in mBridge alongside HKMA, Bank of Thailand, and the Central Bank of the United Arab Emirates, with the Saudi Central Bank as a later joining participant. mBridge graduated from the BIS Innovation Hub in mid-2024, and the post-graduation governance structure places PBoC as one of the principal central-bank participants in the ongoing programme. Specific transaction volumes and named cross-border pilot work under post-graduation governance are not consolidated in current raw entries.

Third, mainland stablecoin policy. PBoC has been a co-sponsor of the September 2021 joint statement (with CSRC and other Chinese regulators) banning all virtual currency-related business activity in mainland China, which is the structurally binding constraint on mainland-domestic private-sector RMB stablecoin issuance. The prohibition has been remarkably stable since 2021, with no public liberalisation track in current raw entries for any private-sector RMB stablecoin programme.

Operating model

PBoC's regulatory toolkit on tokenisation runs through three distinct routes. The e-CNY infrastructure operates under PBoC's monetary-authority remit, with the e-CNY classified as a direct PBoC liability (M0 in monetary-aggregate terms) and the two-tier issuance model placing the operating-bank function at the four largest state-owned commercial banks. The cross-border CBDC pilot route operates under the PBoC Digital Currency Institute's coordination with mBridge participating central banks. The mainland stablecoin policy route operates under PBoC's monetary-authority and payment-system policy remit, with the prohibition on private-sector RMB stablecoin issuance as the binding constraint.

The e-CNY operational design includes both retail and selected wholesale use cases. Retail use cases include consumer payments, government benefit disbursement, and selected employer payroll programmes. Wholesale use cases are more limited in current raw entries, with the principal wholesale piece being the cross-border CBDC pilot work under mBridge. The e-CNY infrastructure design is closer to a "digital cash" model than a "tokenised deposit" model, with PBoC as the direct issuer and the operating banks running the wallet and distribution function.

The mBridge graduation from the BIS Innovation Hub in mid-2024 was a structural inflection point. Pre-graduation, mBridge operated as a BIS Innovation Hub project with the Hub providing the technical and coordination infrastructure. Post-graduation, the participating central banks operate mBridge under their own coordinated governance structure. The BIS retreated from mBridge participation citing the project's geopolitical sensitivity, with the post-graduation governance structure not fully transparent in current raw entries.

Why it matters

Three structural reasons. First, PBoC operates the world's most operationally advanced retail CBDC. The e-CNY infrastructure has been operationally live since 2020 in pilot scope, has been progressively expanded across Chinese cities and use cases, and has accumulated the largest body of operational experience on retail CBDC of any central bank globally. For comparative analysis on the tokenised-deposit-versus-CBDC architectural question and on the broader retail CBDC operational design space, PBoC's e-CNY work is the load-bearing reference point.

Second, PBoC's positioning on cross-border RMB tokenisation is the structurally distinctive piece in the broader Asia tokenisation map. The mBridge cross-border CBDC pilot programme is the most operationally advanced cross-border CBDC programme globally, and the post-graduation governance structure places PBoC at the centre of the cross-border CBDC architectural conversation. Any future Asia tokenisation programme that touches RMB cross-border flow needs to engage PBoC as the principal regulatory counterparty.

Third, PBoC's mainland stablecoin policy is the structural anchor for the prohibition on mainland-domestic private-sector RMB stablecoin issuance. The structural choice has implications for the broader RMB internationalisation strategy and for the offshore RMB stablecoin design conversation under the Hong Kong Stablecoins Ordinance perimeter, with the offshore RMB stablecoin track operating outside the PBoC mainland regulatory perimeter.

The competitive frame is partly the Federal Reserve (which has taken a more cautious stance on retail CBDC and a more permissive stance on private-sector USD stablecoins under the GENIUS Act perimeter), partly the Bank of Japan (which has been progressing CBDC research at a slower cadence and has been more permissive on private-sector JPY tokenised-deposit and stablecoin issuance), partly the European Central Bank (which has been progressing the digital euro project at a slower cadence than the e-CNY rollout). The structural choice between retail CBDC and private-sector tokenised cash is the load-bearing architectural question across these competitive frames, with PBoC's e-CNY work as the structural reference point on the retail CBDC side.

Recent moves

  • 2025-2026. mBridge platform throughput crossed USD 55.5 billion cumulative across more than 4,000 cross-border transactions, with e-CNY accounting for approximately 95 percent of platform volume (Cointelegraph via TradingView, 2025). Confirms the structural dominance of the e-CNY currency leg on the post-graduation mBridge platform.
  • Late December 2025 / 1 January 2026 effective. PBoC announced the e-CNY 2026 framework upgrade, shifting the e-CNY positioning from cash-like instrument to digital-deposit money with interest-earning capacity to compete with stablecoins (Gov.cn announcement, Dec 2025; CoinDesk, 29 Dec 2025). The framework adjustment is the most consequential CBDC framework change of 2025-2026 globally because it explicitly repositions a major retail CBDC as deposit-money rather than cash-equivalent. The structural implications for the e-CNY's competitive positioning against private-sector stablecoin issuance, for the offshore-RMB design conversation under the Hong Kong Stablecoins Ordinance perimeter, and for cross-border RMB tokenisation activity through mBridge and any successor framework are all material.
  • October 2025. PBoC stood up the e-CNY Operations and Management Centre (OMC) in Beijing, the domestic operations centre that complements the IOC structure.
  • September 2025. PBoC inaugurated the International Operations Centre (IOC) in Shanghai, the cross-border vehicle for e-CNY operations and the operational anchor for any future cross-border tokenised RMB activity outside the mBridge legacy.
  • 2024-2025. e-CNY rollout has continued, with no major mainland stablecoin policy adjustment in current raw entries.
  • Mid-2024. mBridge graduated from the BIS Innovation Hub. Post-graduation governance places PBoC as one of the principal central-bank participants.
  • 2020-2024. e-CNY pilot rollout across Chinese cities and use cases, with the consolidated transaction volume figure not in current raw entries.
  • 2022-2024. mBridge cross-border CBDC pilot programme operational under BIS Innovation Hub coordination with PBoC, HKMA, Bank of Thailand, Central Bank of the United Arab Emirates, and (later joining) the Saudi Central Bank.
  • September 2021. Joint statement from PBoC, CSRC, and other Chinese regulators banning all virtual currency-related business activity in mainland China.

Open questions

  • The consolidated e-CNY transaction volume figure across the retail and wholesale use case scope, with a particular focus on cross-border pilot work through the e-CNY infrastructure.
  • The post-graduation governance structure for mBridge and the named cross-border pilot work under the new structure.
  • PBoC's positioning on cross-border RMB tokenisation outside the mBridge legacy, including any potential connection to offshore RMB stablecoin design conversation under the Hong Kong Stablecoins Ordinance perimeter.
  • The PBoC and CSRC coordination framework on any future stablecoin or tokenised-asset framework that may emerge from the broader Chinese state-owned financial-services reform agenda.
  • The PBoC and HKMA coordination on Hong Kong-mainland tokenisation connectivity, including any future Hong Kong-mainland tokenised-deposit or tokenised-securities programme.
  • Agentic commerce posture. PBoC has not taken a public position on AI agents holding tokenised cash or transacting with tokenised assets, although the e-CNY infrastructure design's centralised supervisory perimeter would structurally allow tighter agent-controls than a private-sector stablecoin design.

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