JD.com and Ant Group are actively pushing for the approval of yuan-pegged stablecoins in Hong Kong to enhance the international standing of the Chinese currency.
Company Actions
According to Reuters, JD.com and Ant Group have been negotiating with the People's Bank of China (PBOC) regarding the potential use of yuan-backed stablecoins offshore. The companies argue that yuan-based stablecoins could significantly boost the global use of the Chinese currency.
Prospects for Yuan-Pegged Stablecoins
Both companies are preparing to issue stablecoins backed by the Hong Kong dollar under a new licensing framework set to take effect on August 1. They are lobbying for the next step, which is to allow yuan-denominated stablecoins to give competition to dollar tokens in the market.
Government Stance and Market
PBOC Governor Pan Gongsheng acknowledged that stablecoins and central bank digital currencies are reshaping global payments. While mainland China continues to ban crypto trading, yuan-pegged stablecoins are increasingly viewed as a means to evolve international settlement systems.
The push for yuan-pegged stablecoins by Chinese companies highlights the need to enhance the competitiveness of the Chinese currency on the global stage.
