JD.com and Ant Group have approached the People's Bank of China with a proposal to approve the launch of RMB-backed stablecoins aimed at strengthening the yuan's position internationally.
Proposal for Stablecoins for International Transactions
JD.com and Ant Group proposed to the People's Bank of China the approval for launching RMB-backed stablecoins on July 4, 2025. The initiative aims to enhance the yuan's position in international transactions, particularly amid dollar dominance. The expected launch of these stablecoins in Hong Kong will proceed if the initiative receives approval.
Historical Context and Expert Opinions
Despite raising the need for RMB-backed stablecoins, the yuan has struggled to exceed a 3% market share globally. While dollar-backed stablecoins dominate, experts indicate that if successful, JD.com and Ant Group's initiative could shift financial dynamics. As expressed by Wang Yongli, Former Deputy Head of the Bank of China, "If yuan cross-border payments remain less efficient than dollar-pegged stablecoins, it poses strategic risks for China."
Potential Consequences for the Global Financial System
Should the initiative achieve success, RMB-backed stablecoins could significantly reshape global payment infrastructure. While many regulatory hurdles remain, gaining approval could set a precedent for the integration of traditional currencies with blockchain technologies.
JD.com and Ant Group's initiative to create RMB-backed stablecoins may significantly impact international financial flows and competition with the dollar, although its success hinges on regulatory approval.
