JD.com, Ant Group Push for Yuan-Based Stablecoins to Counter Dollar Rule: Reuters

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

Source: CoinDesk