China’s JD.com and Ant Group are pushing the central bank to allow yuan-based stablecoins to counter the increase in US dollar-bound digital currencies, Reuters reported Friday.
They suggest launching stableecoins in Hong Kong supported by offshore yuan with the aim of increasing Chinese currency’s global role.
Both companies are already planning to issue Hong Kong-dollar stacked stablecoins when local law begins August 1st.
However, JD.com advocates offshore yuan stableecoins as a strategic step to support yuan internationalization. Push reflects China’s broader ambitions to challenge US dominance in digital funding and expand the range of his currency globally.
China has a long-standing ban on cryptocurrency transactions that extend to most private stablecoins. This ban, especially intensified in 2021, was motivated by concerns about economic crime, capital flight and potential threats to economic stability.
As a counter poured China resources to develop and piloting its own digital yuan (E-cny). This Central Bank Digital Currency (CBDC) is seen as a way of modernizing its payment system and exercising greater control over its economic landscape.
Read more: Jack Ma’s Ant International Seeking StableCOin Licenses in Hong Kong, Singapore: Bloomberg
