based on materials from the site - CryptoFrontNews
Chinese tech giants JD.com and Ant Group are pressuring the People's Bank of China (PBoC) to approve yuan-based stablecoins. Their goal is to launch stablecoins pegged to offshore yuan in Hong Kong to challenge the growing influence of dollar-pegged digital assets.
Promotion of offshore yuan-based stablecoins
JD.com and Ant Group, Alibaba's financial affiliate, are holding closed-door talks with Chinese regulators. According to Reuters, both companies are advocating for stablecoins backed by offshore yuan. Both companies state that they need digital tokens to strengthen the yuan's position on the global stage.
Reuters quotes people familiar with the negotiations, stating: "JD.com claims that offshore yuan stablecoins are urgently needed as a tool to promote the internationalization of the yuan."
These stablecoins will be launched in Hong Kong under new legislation coming into effect on August 1. JD.com and Ant are already planning to issue stablecoins pegged to the Hong Kong dollar, but the push for yuan-pegged alternatives reflects a broader strategy.
This ambition arises against the backdrop of the expansion of US dollar stablecoins worldwide, dominating digital payments and international remittances. By supporting yuan-based tokens, companies aim to strengthen China's presence in digital finance.
The success of these lobbying efforts will reflect a possible change in the policy of the world's strictest government regarding cryptocurrencies. While China banned cryptocurrency activities back in 2021, the development of stablecoins linked to national interests could be a restrained path for digital expansion.
Industry leaders express similar concerns. Wang Yunli, co-chairman of Digital China Information Service Group and former deputy head of the Bank of China, shared on his social media account: "The global expansion of US dollar stablecoins creates new challenges for the internationalization of the yuan."
He also warned: "It will be a strategic risk if cross-border payments in yuan are not as efficient as dollar stablecoins."
These statements highlight the growing confidence of Chinese financial experts that inaction could put China at a disadvantage in digital payments.
Hong Kong seeks a competitive advantage
Hong Kong is working to establish itself as a digital asset hub, directly competing with the United States in setting clear regulatory frameworks. The proposals from JD.com and Ant Group align with these broader ambitions.
If adopted, the yuan-based stablecoin will benefit international and cross-border payments using blockchain systems, providing low-cost, round-the-clock transfers. This will allow them to become an alternative to banking rails and US dollar-backed digital currencies.
Regional support from the Hong Kong government, combined with pressure from leading tech companies, could play a key role in changing China's digital currency strategy and accelerating the use of the yuan beyond its borders.
$BTC , $XRP , $BNB
#Сryptomarketnews , #TrumpTariffs
Here, our subscribers will learn FIRST about all the most interesting changes in the financial and cryptocurrency news agenda. Everything in one news feed!!!
Welcome to us! There are enough news for everyone!!! 😉
