In a significant move that could signal a shift in China’s crypto policy, tech giants JD.com and Ant Group, an affiliate of Alibaba, are reportedly urging the People’s Bank of China (PBOC) to approve yuan-pegged stablecoins. The proposal aims to counter the growing dominance of U.S. dollar-linked cryptocurrencies and boost international use of the Chinese currency.
According to sources familiar with the matter, both firms have been engaging in closed-door discussions with Chinese regulators, advocating for the issuance of offshore yuan stablecoins in Hong Kong. This follows new legislation set to take effect on August 1 that will allow stablecoin issuances backed by the Hong Kong dollar.
JD.com has argued that yuan-backed stablecoins are essential for promoting yuan internationalization and enhancing cross-border payment efficiency. With over 99% of the global stablecoin market currently tied to the U.S. dollar, Chinese exporters are increasingly turning to dollar-based tokens like Tether (USDT) due to their speed and convenience.
Ant Group is also preparing to apply for stablecoin licenses in Hong Kong and Singapore, with plans for offshore yuan-backed digital currencies. JD.com envisions a phased rollout starting in Hong Kong before expanding into mainland China’s free trade zones.
The push comes amid intensifying competition between Hong Kong and the U.S. to lead in global digital finance. Analysts suggest that embracing yuan stablecoins could be a strategic step for Beijing in its long-held ambition to elevate the yuan as a major global reserve currency.