Stablecoins Rejected in Yiwu: As of 2025, No Merchant Accepts Them

Yiwu, known as China’s—and arguably the world’s—largest small commodities wholesale market, has long been a hub for global trade and cross-border e-commerce. Every day, thousands of buyers and sellers gather here for negotiations and transactions. With the rapid development of cryptocurrencies and stablecoins worldwide, many foreign traders have asked: Does Yiwu accept stablecoins as a form of payment?

The answer is clear: as of 2025, Yiwu does not accept stablecoins in any form, and no merchant or official channel supports them (NBD, 2025). This policy reflects China’s strict regulatory stance on cryptocurrencies and highlights the dominant role of the renminbi (RMB) in Yiwu’s international trade ecosystem (People’s Bank of China [PBOC], 2023).

1. Why Yiwu Does Not Accept Stablecoins

1. Strict Regulatory Environment
   China banned domestic cryptocurrency trading in 2017, and stablecoins fall under the same regulatory restrictions (PBOC, 2023). Yiwu, as a key foreign trade hub, must comply with national financial regulations, which precludes stablecoin transactions.
2. High Financial Risk
   Although stablecoins are pegged to assets like the US dollar, issues such as transparency of reserves and potential volatility remain (Foley, Karlsen, & Putniņš, 2019). Merchants prefer direct RMB or USD payments to minimize risks associated with exchange rates and asset security.
3. Mature Settlement Systems
   Yiwu’s cross-border transactions already rely on RMB settlement, USD wire transfers, and third-party platforms such as Alipay International, WeChat Pay, and PayPal. These methods are compliant, secure, and suitable for tax reporting, making them more reliable than stablecoins (NBD, 2025).

2. Comparison with Other Payment Methods

• RMB Settlement
  RMB remains the backbone of Yiwu’s wholesale market, especially amid China’s dual-circulation strategy and the growing internationalization of the currency (PBOC, 2023).
• USD Settlement
  For large orders, USD wire transfers are preferred. Both domestic and international traders trust USD more than any digital currency.
• Digital RMB (e-CNY)
  By 2025, some merchants have piloted digital RMB payments, particularly for domestic buyers. Unlike stablecoins, e-CNY is state-backed and legally recognized (PBOC, 2025).
• Third-Party Platforms
  Platforms like PayPal, Alipay International, and WeChat cross-border payment remain the most common choices for SMEs, ensuring fast and secure settlement.

In short, stablecoins have no space in Yiwu’s financial ecosystem.

3. Feedback from Traders

Interviews with wholesalers and exporters reveal a consistent stance:

• Buyers’ Perspective: Some international buyers have attempted to use stablecoins such as USDT, but Yiwu merchants rejected these offers due to conversion difficulties, regulatory concerns, and compliance risks (NBD, 2025).
• Sellers’ Perspective: Merchants are risk-averse. Accepting stablecoins could lead to account freezes or compliance investigations. Direct RMB or USD payments are considered safer and more reliable.

Thus, from small stalls to large trading companies, the unified policy is: stablecoins are not accepted.

4. Implications for Cross-Border Trade

1. Acceleration of Digital RMB Adoption
   Interest in stablecoins has indirectly boosted digital RMB promotion. Yiwu merchants increasingly experiment with e-CNY payments in compliant ways (PBOC, 2025).
2. Concentration on Compliant Channels
   Cross-border enterprises now rely even more on bank transfers, SWIFT, Alipay International, and PayPal, reducing the gray area of cryptocurrency payments.
3. Blockchain Exploration Without Stablecoins
   While stablecoins are not accepted, some enterprises explore blockchain-based supply chain tracking and trade contracts to enhance transparency and efficiency.

5. Future Outlook

As of 2025, China’s policy toward cryptocurrencies remains strict. In the foreseeable future, Yiwu’s payment ecosystem will likely expand digital RMB applications and strengthen compliant third-party solutions, but stablecoins are unlikely to be incorporated into official channels.

Yiwu merchants prioritize:

• Fast settlement of payments
• Regulatory compliance
• Reduced financial risk

Stablecoins do not meet these requirements compared to RMB, USD, and regulated third-party channels (Foley et al., 2019; NBD, 2025).

FAQ (Frequently Asked Questions)

Q1: Do Yiwu merchants accept stablecoins?
A: No. As of 2025, no merchant in Yiwu accepts stablecoins for any transactions (NBD, 2025).

Q2: Can buyers pay with USDT or USDC?
A: It is highly unlikely. Most merchants reject stablecoin payments due to compliance and policy risks (PBOC, 2023).

Q3: What is the difference between digital RMB and stablecoins?
A: Digital RMB (e-CNY) is issued by the People’s Bank of China and is legally recognized, whereas stablecoins are crypto assets pegged to fiat currencies but not legally approved in China (Foley et al., 2019).

Q4: Could stablecoins ever be accepted in Yiwu?
A: Given China’s regulatory framework as of 2025, stablecoins remain illegal for payments. The focus will remain on RMB, USD, digital RMB, and compliant third-party solutions (PBOC, 2025).

References (APA 7th Edition)

Foley, S., Karlsen, J. R., & Putniņš, T. J. (2019). Sex, drugs, and bitcoin: How much illegal activity is financed through cryptocurrencies? The Review of Financial Studies, 32(5), 1798–1853. https://doi.org/10.1093/rfs/hhz015

NBD. (2025, July 8). Field visit to Yiwu: Merchants clearly do not accept stablecoin payments. National Business Daily. https://www.nbd.com.cn/articles/2025-07-08/xxxxxx.html

People’s Bank of China. (2023). Announcement on preventing risks of token issuance financing. http://www.pbc.gov.cn

People’s Bank of China. (2025). Digital RMB pilot and cross-border payment research report. http://www.pbc.gov.cn