China’s tech giants JD.com and Ant Group, the fintech affiliate of Alibaba, are pressing the People’s Bank of China (PBOC) to approve yuan-based stablecoins as a strategic move to curb the growing dominance of U.S. dollar-pegged digital tokens.
According to a Reuters report citing sources familiar with the matter, the companies are advocating for the launch of stablecoins backed by offshore yuan—currency circulating outside mainland China—in Hong Kong. They argue this would bolster the yuan’s global presence in trade and reduce reliance on the U.S. dollar.
In recent closed-door meetings with the PBOC, JD.com executives reportedly emphasized the urgency of issuing yuan-backed stablecoins to accelerate the internationalization of China’s currency.
Both JD.com and Ant Group are said to be preparing to apply for stablecoin licenses in Hong Kong and Singapore. JD.com has also proposed starting stablecoin issuance in Hong Kong, with plans to expand pilot programs to China’s free trade zones. Regulators have reportedly responded positively to the early proposals.
Inefficiencies in Yuan Payments Threaten to Prolong Dollar Dominance
In May, the yuan’s share of global payments dropped to 2.89%—its lowest level in nearly two years—while the U.S. dollar maintained a dominant 48% share, according to Reuters, citing data from payment network Swift.
Highlighting the strategic implications, Wang Yongli, former deputy governor of the Bank of China, recently warned that the yuan’s lag in cross-border payment efficiency compared to dollar-backed stablecoins could pose a long-term risk to China’s financial influence.
These concerns emerge as Hong Kong accelerates efforts to build a regulatory framework for stablecoins. Last week, the city unveiled a new digital asset initiative under its “LEAP” strategy, focused on regulating stablecoins, fostering asset tokenization, enhancing legal clarity, and nurturing ecosystem growth and talent development.
Starting August 1, Hong Kong will launch a licensing regime for stablecoin issuers—an effort aimed at encouraging real-world applications and establishing the city as a hub for digital finance.
JD.com Plans to Seek Stablecoin Licenses
In June, JD.com founder Liu Qiangdong announced that the company intends to apply for stablecoin licenses in all major sovereign currency jurisdictions worldwide.
His remarks followed a statement from People’s Bank of China (PBOC) Governor Pan Gongsheng, who revealed plans to set up an international digital yuan operations center in Shanghai—part of a broader push to globalize the digital yuan and reduce dependence on the U.S. dollar.
Gongsheng outlined China’s vision for a “multipolar” currency system, where multiple national currencies play key roles in the global economy. This stands in contrast to the current landscape, where a handful of currencies—chiefly the U.S. dollar and the euro—dominate global finance.
The stablecoin market now exceeds $258 billion in total value, according to CoinMarketCap. All of the top 10 stablecoins by market capitalization are pegged to the U.S. dollar. The euro-backed EURC is the largest non-dollar stablecoin, ranking 11th overall.
