Chinese firms maintain stablecoin activities abroad for Belt and Road and forex markets.
Alibaba’s cross-border e-commerce unit is reportedly working on a deposit token amid China’s regulatory crackdown on stablecoins, CNBC reported.
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The report comes after Chinese tech firms, including Ant Group and JD.com, paused their HongKong stablecoin plans following guidance from mainland regulators over concerns about private control of currency‑like instruments.
Alibaba president Kuo Zhang told CNBC that the company plans to use stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term-like technology to streamline overseas transactions. The deposit token under consideration is a blockchain-based instrument representing a direct claim on commercial bank deposits and is treated as a regulated liability of the issuing bank.
Traditional stablecoins are issued by private entities and backed by assets to maintain value. Alibaba’s move follows a report that JPMorgan Chase rolled out its deposit token to institutional clients earlier this week.
In late September, a Caixin report suggested Chinese firms in HongKong could face restrictions on cryptocurrency activities, including limits on mainland investments in crypto and crypto exchanges.
The report was later removed. Earlier, in August, authorities instructed local firms to stop publishing research and holding seminars on stablecoins, citing concerns that these tokens could facilitate fraud.
Despite restrictions on the mainland, Chinese entities have maintained some involvement in stablecoins abroad. In July, blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term firm Conflux introduced a new stablecoin backed by offshore Chinese yuan for overseas entities and countries linked to China’s Belt and Road Initiative.
A regulated stablecoin tied to the international version of the yuan also launched in late September, targeting foreign exchange markets. Joshua Chu, co-chair of the Hong Kong Web3 Association, said, “China is unlikely to issue stablecoins onshore.”
