JD.com and Ant Group are reaching out to the People's Bank of China to push for the launch of yuan-based stablecoins to counter the rising dominance of the dollar.
Lobbying for Yuan Stablecoins
JD.com and Ant Group are urging regulators to allow stablecoins backed by offshore yuan to launch in Hong Kong, arguing that this step would strengthen the yuan's role in global trade, reducing the dollar's influence.
Assessing Yuan's Competitiveness
In May, the yuan's share of global payments fell to 2.89%, the lowest in nearly two years, while the dollar holds a commanding 48%. Experts warn of strategic risks for China if yuan cross-border payments remain less efficient than dollar stablecoins.
JD.com's Licensing Plans
JD.com and Ant Group are reportedly preparing to apply for stablecoin licenses in Hong Kong and Singapore. JD.com founder Liu Qiangdong expressed intentions to obtain stablecoin licenses in sovereign currency countries, receiving positive preliminary feedback from regulators.
The launch of yuan-backed stablecoins may significantly reshape international trade patterns and help China reduce reliance on the dollar.
