JD.com and Ant Group Lobby for Yuan Stablecoin in Hong Kong
JD.com and Ant Group are seeking authorization from the People's Bank of China for a yuan-based stablecoin in Hong Kong to decrease dependence on US dollar-backed digital currencies. Key points include:
- Both companies intend to issue Hong Kong dollar-backed stablecoins starting August 1.
- A yuan-pegged stablecoin is viewed as vital for promoting the international use of the yuan.
- Over 99% of current stablecoins are USD-tied, with Tether’s USDT dominating at 68.2% market share.
- Chinese exporters increasingly utilize USDT for international payments to avoid currency risks.
- Interest in stablecoins is growing among Chinese policymakers despite the 2021 cryptocurrency ban.
- The Stablecoin Ordinance in Hong Kong will allow companies to apply for licenses.
- Approval of a yuan-pegged stablecoin could significantly alter China's stance on digital assets and boost the yuan's global financial presence.