JD.com and Ant Group Advocate for Yuan Stablecoins to Counter US Dollar Dominance
In a strategic effort to strengthen the Chinese yuan‘s international position, JD.com and Ant Group are engaging with the People’s Bank of China (PBOC) to introduce yuan-based stablecoins. This initiative seeks to diminish dependence on US dollar-pegged tokens while enhancing the yuan’s role in global commerce. The proposal centers on stablecoins supported by offshore yuan, with initial deployment planned for Hong Kong.
The Declining Role of Yuan in Global Payments
The yuan’s portion of worldwide payments decreased to 2.89% in May, marking its lowest point in almost two years. In contrast, the US dollar commands a 48% share. Wang Yongli, former deputy governor of Bank of China, highlights the strategic vulnerabilities posed by inefficient yuan cross-border transactions.
Hong Kong’s Progressive Stance on Stablecoin Regulation
Hong Kong is advancing its regulatory framework for stablecoins under the LEAP initiative. Effective August 1, the region will implement a licensing system for stablecoin issuers, designed to encourage practical applications and ecosystem development.
JD.com’s Expansion into Global Stablecoin Markets
JD.com has announced intentions to seek stablecoin licenses across key global markets. This move supports PBOC Governor Pan Gongsheng‘s broader objective of establishing a multipolar currency system. The creation of an international digital yuan operations hub in Shanghai will further this ambition.
Current Landscape of the Stablecoin Market
The stablecoin sector boasts a market capitalization surpassing $258 billion. Dominated by dollar-pegged assets, the top 10 stablecoins all tie to the US dollar. EURC, which mirrors the euro, stands as the leading non-dollar stablecoin at 11th place.
