Eight Departments Including the Central Bank: Virtual Currencies Such as Bitcoin, Ethereum, and Tether Are Not Legal Tender

Odaily News The People's Bank of China and seven other departments have issued a notice on further preventing and addressing risks related to virtual currencies and other activities (Yin Fa [2026] No. 42). The notice clarifies the essential nature of virtual currencies, tokenization of real-world assets, and related business activities, stating that virtual currencies do not possess the same legal status as fiat currency. Virtual currencies such as Bitcoin, Ethereum, and Tether are characterized by not being issued by monetary authorities, utilizing encryption technology and distributed ledger or similar technologies, and existing in digital form. They are not legal tender and should not and cannot be circulated and used as currency in the market.