China’s tech giants JD.com and Ant Group are pushing for yuan-based stablecoin in Hong Kong. The duo wants the central bank to approve digital tokens tied to the offshore yuan. This comes as U.S. dollar-pegged stablecoins dominate global crypto payments.
As per the report by Reuters, both firms believe yuan stablecoin will boost China’s currency usage in global trade. This move could reshape Beijing’s crypto stance.
China banned crypto in 2021, but the tide seems to be turning. JD.com and Ant Group already plan to issue Hong Kong dollar-backed stablecoins once new rules launch on August 1. However, they argue the Hong Kong dollar is tied to the U.S. dollar. Hence, it does little to promote the yuan.
China Faces Digital Dollar Threat
The rise of dollar-linked stablecoin market is alarming for China. Over 99% of stablecoins are U.S. dollar-based. This is strengthening the dollar’s grip on global trade. Moreover, many Chinese exporters now prefer USDT for payments. JD.com argues this threatens yuan’s existence and internationalization.
Additionally, capital controls and trade tensions push businesses toward stablecoins. According to HashKey, another major Chinese player in the industry, more overseas buyers are paying Chinese exporters with dollar-pegged tokens. Hence, stablecoins are now vital for cross-border deals.
Regulators Eye Offshore Yuan Tokens
Moreover, the People’s Bank of China is listening. In closed-door talks, JD.com urged quick approval for offshore yuan stablecoin. They want to launch in Hong Kong first, then expand to free trade zones. Ant is also preparing license bids in Hong Kong and Singapore.
Furthermore, Chinese policymakers are warming up to this idea. PBOC advisors hint at support. The yuan’s global share is falling. Stablecoins could fix that—if China acts fast.
Also Read: Bank of England Says Stablecoins Could Weaken Trust in Money
