Ant Group and JD.com are jointly pushing for the People's Bank of China's approval to launch a yuan-pegged stablecoin in Hong Kong, aiming to break the current dominance of dollar-backed stablecoins in the international market.
According to a Reuters report on July 3, sources revealed that these two Chinese tech giants are actively lobbying regulators, hoping to issue a yuan stablecoin to weaken the dollar's long-standing advantage in global trade settlements. They believe that if the yuan does not participate in this digital asset race, it will pose a "strategic risk" to China.
Currently, JD.com and Ant Group have started preparing to apply for stablecoin issuance licenses in Hong Kong and Singapore. JD.com has further proposed launching the yuan stablecoin in Hong Kong first, followed by pilot projects in China's free trade zones. Preliminary feedback shows that regulators are open to this suggestion.
It is noteworthy that this move comes at a time when the yuan's share in the global payment system continues to decline. SWIFT data shows that in May this year, the yuan accounted for only 2.89% of global payments, hitting a new low in nearly two years, while the dollar still dominates with 48%. Wang Yongli, former vice president of Bank of China, has publicly stated that if the yuan cannot achieve the all-weather cross-border settlement capabilities like the dollar stablecoin, it will face "financial sovereignty risks" in the future.
Although Hong Kong has planned to officially implement a stablecoin issuance licensing system on August 1 and promote the tokenization of digital assets through the "LEAP" framework, JD.com and Ant Group clearly believe this is not enough. They emphasize that only by launching a yuan-priced, regulatory-compliant stablecoin can the Chinese currency truly enhance its position in the global digital economic system.
