China’s Tech Giants Push for Yuan Stablecoin to Challenge USDT Dominance
JD.com & Ant Group are lobbying China’s central bank to approve a yuan-pegged stablecoin in Hong Kong, aiming to counter Tether’s (USDT) dominance in global trade and payments.
Key Highlights:
Why? USDT controls 99% of the stablecoin market, hurting China’s efforts to internationalize the yuan.
Where? Hong Kong could become the testing ground, with new crypto rules starting August 1, 2025.
Who’s Involved? Alibaba’s Ant Group and JD.com are leading the push, with plans for HKD & offshore yuan stablecoins.
Why This Matters for Crypto & Trade:
Chinese exporters are increasingly using USDT to bypass capital controls—volumes up 5x since 2021.
A yuan stablecoin could boost China’s digital currency ambitions while keeping crypto banned on the mainland.
Geopolitical Shift: If approved, this could challenge the dollar’s dominance in crypto payments.
China’s Dilemma:
The yuan’s share in global payments has dropped to 2.89% (SWIFT), while the USD remains at **48%+.
Strict capital controls and China’s 2021 crypto ban have slowed progress—but pressure is mounting.
US vs. China Stablecoin Race
US: Trump’s administration is fast-tracking stablecoin regulations, giving dollar-backed coins an edge.
China: If PBOC approves, Hong Kong could become a testing hub for a yuan-backed digital currency.
Will China finally embrace crypto-linked solutions to compete with the US?
This could be a game-changer for global crypto adoption—stay tuned!
#Stablecoin #USDT #China #Crypto #DigitalYuan