Jingdong·Ant Group, Urge allowance of yuan stablecoin…“Need to strengthen global status”

Large private companies in China have officially requested the People's Bank of China to allow the issuance of Yuan stablecoins. According to Reuters, Jingdong.com and Ant Group have recently emphasized the opportunity to enhance the international status of the Yuan through the issuance of offshore (Hong Kong) Yuan stablecoins to the People's Bank.

The two companies are in a position to issue Yuan stablecoins in Hong Kong for use in offshore payments and trade. In particular, Ant Group and Jingdong have already set up plans to launch Hong Kong dollar-based stablecoins, showing their intention to also secure the scalability of Yuan-based digital assets.

This move is noteworthy as it comes amid the institutionalization of the stablecoin markets in the United States and Europe and the intensifying competition for dominance in digital finance. The Chinese government is actively pursuing Central Bank Digital Currency (CBDC), but the issuance of Yuan stablecoins led by the private sector is not yet officially permitted.

In the market, there are concerns that this proposal may clash with the internationalization strategy of the Yuan, but at the same time, there is hope for policy shifts as cooperation with the private sector could lead to faster global spread.