Leading Chinese tech companies, JD.com and Ant Group, have approached the People’s Bank of China (PBOC) requesting it to greenlight yuan‑based stablecoins. They argue that allowing offshore yuan‑pegged tokens, especially in Hong Kong, could accelerate the yuan’s tradability. This will also help them challenge the increasing global dominance of U.S. dollar‑linked cryptocurrencies.
According to a Reuters report, both companies had shown interest in issuing stablecoins tied to the Hong Kong dollar once the region’s licensing regime comes into effect on August 1. The moves come as Hong Kong races the United States in setting up a regulatory framework for stablecoins, competing for a greater reach in global digital finance and trade.
Their lobbying aligns closely with China’s broader financial strategy. However, JD.com has argued that offshore yuan stablecoins would act as a tool to promote yuan internationalisation.
The stablecoin market has already reached approximately $247 billion, with over 99% denominated in U.S. dollars. China wants to narrow this gap, by building a “multi‑polar” global currency system. This would get a boost by expanding digital yuan usage and establishing cross‑border payment systems to reduce reliance on the dollar.
The yuan’s share as a global payment currency fell to 2.89% in May, the lowest in almost two years, according to payment platform SWIFT. The dollar commands a 48.46% market share.
Should the PBOC approve these stablecoins, it would mark a major shift in Beijing’s approach to crypto and present a new mechanism for strengthening the yuan’s position in global digital finance.