Chinese tech giants, JD.com and Ant Group, are urging the central bank to allow the creation of stablecoins pegged to the yuan, in an effort to counter the growing influence of US dollar-linked digital currencies, according to a Reuters report. The companies plan to launch stablecoins backed by the offshore yuan in Hong Kong, with the goal of increasing the yuan's global presence. Both companies are already set to issue stablecoins backed by the Hong Kong dollar once local regulations take effect on August 1. JD.com is pushing for offshore yuan stablecoins as a strategic move to support the internationalization of the yuan, reflecting China's broader goal of challenging US dominance in digital finance and expanding the reach of its currency worldwide.
China has a long-standing ban on cryptocurrency transactions, including most private stablecoins, due to concerns over financial crime and potential threats to financial stability. In response, China has invested heavily in developing its own digital yuan, a central bank digital currency aimed at modernizing its payment system and increasing control over its financial landscape.