Digital RMB new regulations are coming: How will the central bank's action plan reshape the crypto market landscape?

The “Action Plan on Further Strengthening the Digital Renminbi Management Service System and Related Financial Infrastructure Construction” to be released by the central bank marks a critical step for China’s official digital currency from pilot testing to full institutionalization.

01 Policy Trends

The People’s Bank of China is about to launch the “Action Plan on Further Strengthening the Digital Renminbi Management Service System and Related Financial Infrastructure Construction,” which signifies an important move from the pilot phase to comprehensive institutional management of the digital renminbi.

The core of this policy is to build a complete digital legal currency ecosystem, covering the entire lifecycle of digital renminbi from issuance and circulation to cross-border payments.

Unlike decentralized cryptocurrencies such as Bitcoin, the digital renminbi features “centralized management” and a “two-tier operation system.” This means the People’s Bank of China holds the final issuance and control rights, while commercial banks are responsible for exchange and circulation to the public.

02 Key Focus of the Plan

The new plan mainly revolves around three pillars, each potentially having a profound impact on the existing financial landscape.

First is technological infrastructure upgrading. The plan explicitly proposes to promote the interconnection between the digital renminbi and existing payment systems. This implies that future financial infrastructure needs to support both traditional currencies and seamless digital renminbi transactions.

Second is the improvement of regulatory frameworks. The plan aims to establish a comprehensive supervision system for the entire lifecycle of the digital renminbi, including anti-money laundering, counter-terrorist financing, and user privacy protection mechanisms. This regulatory approach could serve as a reference for the compliance of other digital currencies.

Finally, application scenarios will be expanded. The plan encourages increasing the use of digital renminbi in retail transactions, government services, cross-border payments, and other fields. Especially in cross-border settlement pilot projects along the “Belt and Road” countries, this could reshape regional financial patterns.

03 Competition and Integration

The relationship between the digital renminbi and cryptocurrencies is far from simple substitution or competition; instead, it presents a complex interaction pattern. The new plan offers a fresh perspective for observing this dynamic.

Balancing regulation and innovation is at the core of this interaction. The centralized management model of the digital renminbi contrasts sharply with the decentralized philosophy of traditional cryptocurrencies. However, both may learn from each other in technological innovation.

For example, the digital renminbi might adopt blockchain-like distributed ledger technology to record transactions while maintaining centralized control. This hybrid model could give rise to new financial technology standards.

From a market structure perspective, the digital renminbi mainly targets everyday transaction scenarios, whereas cryptocurrencies like Bitcoin play more roles in value storage and investment.

This differentiated positioning suggests that both currency systems may coexist for a considerable period, each serving different financial needs.

04 Future Outlook

As the central bank’s digital renminbi action plan is gradually implemented, cryptocurrency market participants need to pay attention to several key trends.

Reconstruction of cross-border payments could be the earliest impact. If the cross-border settlement pilot of the digital renminbi succeeds, it may reduce the advantages of traditional cryptocurrencies in cross-border transfers. Currently, Bitcoin’s cross-border transfer value often exceeds daily payment needs.

Technological integration will create new opportunities. If the underlying technology of the digital renminbi partially adopts blockchain or similar technologies, it could promote the maturity and popularization of related technical standards, indirectly advancing the entire blockchain industry.

At Gate Exchange, Ethereum’s 30-day price fluctuation shows a -0.71% change, reflecting the market’s reassessment of the role of smart contract platforms in the digital legal currency era. Blockchain projects capable of interoperating with traditional financial infrastructure may attract more attention.

As details of the central bank digital renminbi action plan are gradually announced, the boundaries between traditional finance and the crypto world will continue to blur. For Gate Exchange users, understanding this policy direction is not only necessary for grasping market trends but also the foundation for making wise decisions in this rapidly merging financial new era.