China’s JD.com and Ant Group are pressing the central bank to permit yuan-based stablecoins to counter the rise of U.S. dollar-linked digital currencies, Reuters reported on Friday.
They propose launching stablecoins in Hong Kong backed by the offshore yuan, aiming to boost the Chinese currency’s global role.
Both firms already plan to issue Hong Kong dollar-backed stablecoins once local legislation begins August 1.
However, JD.com is advocating for offshore yuan stablecoins as a strategic move to support yuan internationalization. The push reflects China’s broader ambitions to challenge U.S. dominance in digital finance and expand the reach of its currency globally.
China has a long-standing ban on cryptocurrency transactions, which extends to most private stablecoins. This ban, particularly intensified in 2021, was motivated by concerns over financial crime, capital flight, and potential threats to financial stability.
As a counter, China poured resources into developing and piloting its own digital yuan (e-CNY). This central bank digital currency (CBDC) is seen as a way to modernize its payment system and exert greater control over its financial landscape.
Read more: Jack Ma’s Ant International Seeks Stablecoin Licenses in Hong Kong, Singapore: Bloomberg