2026 Central Bank Work Conference: Block the "side doors" for virtual currencies, open the "main doors" for digital RMB, and bring RWA into the compliant track

Written by: Liang Yu

Edited by: Zhao Yidan

The 2026 People’s Bank of China Work Conference concluded, with the deployment of “Strengthening Virtual Currency Regulation” and “Steady Development of Digital RMB” clearly placed within the same policy framework. This is not merely a technical route choice but a profound declaration of a new financial development paradigm. It clearly indicates that the innovation trajectory of China’s financial technology is being reshaped, and all explorations attempting to connect real assets with the digital world must operate within this newly defined domain.

According to a report by Yicai on January 6, this conference set the tone for the year’s work, emphasizing “strict implementation of penetrating supervision over payment institutions” and “strengthening virtual currency regulation, continuously cracking down on related illegal activities.” Meanwhile, on the financial service front, “steady development of digital RMB” was listed as a key routine task. This policy combination of tightening and stabilizing, breaking and establishing, is akin to “performing a precise ‘vascular cleansing’ for financial innovation,” cutting off the virtual cycle of speculation and risk, while laying down a systemic network for the smooth circulation of the ‘digital blood’—digital RMB—that serves the real economy.

The signals released by the conference quickly sparked in-depth analysis in the RWA (Real World Assets) field. This track, dedicated to mapping physical assets such as bonds, real estate, and carbon credits onto the blockchain, stands at a critical crossroads: on one side, continuous tightening aimed at clearing speculative virtual currency activities; on the other, steady advancement of the digital RMB infrastructure backed by national credit. This marks that the value anchor of RWA, which aims to “connect reality and digital,” must shift from volatile “cryptographic assets” to stable, credible “legal digital foundations.” The conference can be seen as a watershed, officially integrating the innovative narrative of RWA into the context of “Chinese-style financial modernization,” moving beyond the past “financial globalization experiments.”

1. Policy Interpretation: Strengthening Virtual Currency Regulation—Focus and Boundaries

The signals from the 2026 People’s Bank of China Work Conference are very clear. The conference proposed to “strengthen virtual currency regulation and continue cracking down on related illegal activities,” continuing China’s regulatory tone on virtual currencies in recent years.

This policy statement is consistent with a series of regulatory actions at the end of 2025. On November 28, 2025, thirteen ministries held a meeting to deploy efforts to combat virtual currency trading speculation; subsequently, on December 5, the China Internet Finance Association, China Banking Association, and six other industry associations jointly issued a “Risk Reminder on Preventing Illegal Activities Involving Virtual Currencies.”

The core target of the policy is very clear: to combat illegal fundraising, financial fraud, money laundering, and other criminal activities, and to suppress pure financial speculation detached from real value. The People’s Bank of China’s work conference placed this statement after “strict implementation of penetrating supervision over payment institutions,” highlighting the regulatory approach of starting from capital channels to cut off the lifelines of illegal virtual currency activities.

In practice, this “penetrating” supervision has formed a systematic framework. In recent years, regulators have increasingly tightened requirements on payment institutions, demanding enhanced customer identity verification and transaction monitoring to prevent virtual currency transaction funds from flowing through payment channels.

For the RWA track, which aims to “connect reality and digital,” this regulatory signal requires precise interpretation. It does not deny blockchain technology innovation itself but clearly delineates behavioral boundaries for this emerging field, especially targeting RWA projects that use virtual currencies as valuation and settlement tools.

2. Is Tightening Regulation a “Straitjacket” or a “Purifier” for RWA?

The strong regulatory policies have had immediate impacts on the RWA industry. Industry observations suggest that projects heavily tied to virtual currencies, with opaque trading structures and unclear asset rights, are facing unprecedented compliance pressures.

Some pseudo-RWA projects in the market are the focus of regulatory crackdowns. These projects often claim to tokenize real assets like real estate, art, or commodities, but in reality lack genuine asset backing, with related asset rights documents and audit reports possibly forged.

Such “pseudo RWA” projects not only harm investors’ interests but also cause trust crises across the industry. Ma Mingliang, a professor at the China University of Public Security, pointed out that these projects are essentially cross-border regulatory arbitrage, exploiting the misconception that RWA “anchors real assets = stability + yield,” designing high-yield rhetoric, employing multi-level distribution models, and using new investors’ funds to pay dividends to old investors.

The tightening of regulation is also reflected in specific business practices. In September 2025, the China Securities Regulatory Commission (CSRC) suggested that Chinese securities firms suspend RWA tokenization-related activities in Hong Kong. Subsequently, tech giants like Ant Group and JD Digits also paused their stablecoin plans in Hong Kong. This “window guidance” regulatory approach reflects a cautious attitude of “compliance first, then development” before the regulatory system matures.

From another perspective, strict regulation also acts as a “purifier” for the industry. It clears out projects that disguise financial scams as RWA, leaving space for genuine innovations serving the real economy. This “good money drives out bad” effect is beneficial for the long-term healthy development of the industry.

3. Global Landscape: Multiple Tracks and Common Logic in RWA Development

Focusing on China’s regulatory policies, the global RWA market is developing at an astonishing pace. Industry data shows that by the end of August 2025, the total global RWA market value had grown to approximately $66 billion. By the end of 2024, this figure was about $15 billion, meaning the market value increased more than threefold in less than a year.

Table: Major Categories and Characteristics of the Global RWA Market

Hong Kong, as an international financial center, plays a pioneering role in RWA. In September 2025, UBS Group, Chainlink, and DigiFT jointly launched a pilot RWA project in Hong Kong, aiming to improve compliance fund operations through on-chain automation.

This pilot adopted a “regulatory sandbox” model and was approved under the Hong Kong Internet Blockchain and Digital Asset Pilot Subsidy Program. The project managed orders via smart contracts, using digital transfer proxy contracts for instruction verification, enabling automated handling of issuance, redemption, and other lifecycle events.

Globally, RWA development shows clear “layered” characteristics. Initially, the focus was on tokenizing low-risk assets like U.S. Treasuries; by 2025, capital was increasingly flowing into high-yield products like private credit.

This shift reflects the maturing process from concept validation to practical application. As Chris Yin, CEO of Plume Network, stated: “Real progress comes from active users holding and using assets on-chain, making them liquid, composable, and part of DeFi.”

4. Will Digital RMB Become a “Highway” for RWA Development?

Contrasting sharply with the strong regulation of virtual currencies, the People’s Bank of China Work Conference also proposed to “steadily develop digital RMB.” This policy signal opens another door for the RWA industry—digital RMB could become a national-level infrastructure tool for compliant RWA development.

The core advantage of digital RMB lies in its status as legal tender and backed by national credit. Unlike fully anonymous virtual currencies, digital RMB adopts a “controllable anonymity” design, protecting user privacy while meeting anti-money laundering and anti-terrorist financing regulatory requirements. This feature precisely addresses the balance between transparency and privacy in RWA transactions.

In practical applications, the potential of digital RMB has already begun to emerge. In September 2025, Guangdong United Electronic Services Co., Ltd. completed an innovative transaction—the first “data asset pledge + digital RMB loan” in the national highway industry.

In this transaction, the enterprise used data assets such as “Guangdong Provincial Highway Digital Twin (Simulation) Support Data” as collateral and successfully obtained a digital RMB loan of 1 million yuan. This case demonstrates the practical value of digital RMB in asset digitization and financing.

Companies like Desen Technology are also making progress in exploring the integration of digital RMB with people’s livelihood sectors. The company has helped complete the first sample card of Beijing Minsheng Card loaded with a digital RMB hardware wallet and is deeply involved in nationwide subsidy and pension distribution.

The “programmability” feature of digital RMB offers more possibilities for RWA innovation. By embedding smart contracts, digital RMB can automatically execute payments and settlements under preset conditions, supporting more complex financial product designs and transaction structures.

5. How Can RWA Find a Balance Between Innovation and Regulation?

Globally, balancing regulation and innovation is the core challenge for RWA development. In this field, Mainland China and Hong Kong form a regulatory landscape that is both distinct and complementary.

Mainland China’s current regulation adopts a cautious stance. In 2024, the China Securities Industry Association issued the “Guidelines for Blockchain in Asset Management (Draft for Comments),” proposing three principles: on-chain assets must be based on verifiable underlying assets, with traceable, auditable, and transparent on-chain data.

In contrast, Hong Kong has adopted a more open path of regulatory innovation. The Hong Kong Monetary Authority’s Ensemble project requires RWA projects to embed a “regulation-as-code” module, with non-compliant projects facing a daily 2% revenue penalty. This tech-driven regulatory approach represents the forefront of global regtech.

Technological solutions are transforming the interaction between regulation and innovation. Projects like KRNL create programmable kernels that abstract regulatory requirements into modular code, enabling RWA projects to quickly adapt to multiple jurisdictions.

This “compliance-as-code” innovation can turn complex regulation into inclusive financial infrastructure, potentially reducing compliance costs from millions to thousands of dollars, transforming financial innovation from an institutional privilege into a broader opportunity.

For cross-border RWA projects, the compliant flow of data and funds is another major challenge. Projects must meet different legal requirements for data security, privacy, foreign exchange, and anti-money laundering across jurisdictions. Regulations like China’s “Data Security Law” and “Personal Information Protection Law” and Hong Kong’s “Anti-Money Laundering and Counter-Terrorist Financing Ordinance” need to be coordinated.

6. What’s Next for RWA in China?

Looking ahead, the development of RWA in China will feature a “dual circulation” pattern. Domestically, the focus will be on the digital RMB ecosystem, exploring its applications in asset digitization, supply chain finance, and data asset pledges.

This path emphasizes “moving from virtual to real,” highlighting deep integration of blockchain technology with the real economy. As demonstrated by the Guangdong highway data asset pledge case, the key is to leverage technological innovation to enhance liquidity and financing efficiency of traditional assets, rather than creating financial products detached from the real economy.

In cross-border areas, Hong Kong will continue to serve as a “super connector.” Mainland enterprises can utilize Hong Kong’s compliant frameworks to connect with global capital and markets. Regions like Shenzhen and Hainan may explore regulatory coordination with Hong Kong, forming innovative models such as “Hong Kong residence, Hainan outbound.”

In terms of asset types, sectors aligned with national strategies like green energy and digital economy may become priority directions for RWA exploration. The tokenization of photovoltaic assets by GCL New Energy shows this trend. These assets have clear business models and stable cash flows, making them easier to gain regulatory understanding and market acceptance.

For industry practitioners, the strategic focus should shift from “riding the virtual currency wave” to “integrating into the national financial technology infrastructure represented by digital RMB.” This entails strengthening understanding of real assets, enhancing compliance structure design, and mastering the application of innovative tools like digital RMB.

Industry development will also promote the improvement of relevant standards. In March 2025, led by China Academy of Information and Communications Technology (CAICT), nearly 20 companies participated in drafting the “Technical Specification for Trusted On-Chain of Real Assets,” which has been officially initiated. Such standards will provide technical frameworks and operational guidelines for the industry.

As the central bank’s work conference concludes, discussions in the financial market continue. Some industry insiders are re-evaluating their RWA project structures. Those projects that previously centered on virtual currencies are now exploring how to shift valuation and settlement systems toward more compliant tracks.

Meanwhile, technical teams are accelerating research on open interfaces and smart contract functions of digital RMB. A fintech company in Shenzhen stated: “The programmability of digital RMB might be more powerful than we expected; it could support automatic clearance and compliance checks for complex RWA products.”

By 2025, the global RWA market value has approached $66 billion. China’s unique path—relying on digital RMB and other national infrastructure to serve the real economy—may provide a different model for global fintech innovation.

Source references for some materials:

· “Digital RMB Steadily Developing, Virtual Currency Regulation Continues to Strengthen”

· “People’s Bank of China’s Lu Lei: Upholding Innovation and Steady Development of Digital RMB”

· “Strengthening Virtual Currency Regulation to Maintain Stable Economic and Financial Order”