JD.com and Ant Group are urging China's central bank to allow the issuance of yuan-based stablecoins as a strategic response to the growing influence of U.S. dollar-linked digital currencies. The companies plan to launch stablecoins backed by the offshore yuan in Hong Kong, aiming to enhance the global status of the Chinese currency. This initiative reflects China's ambition to challenge U.S. dominance in digital finance and expand the international use of the yuan. Despite a longstanding ban on cryptocurrency transactions and private stablecoins, which was intensified in 2021 due to concerns over financial stability, China is investing in its own central bank digital currency, the digital yuan (e-CNY). This development signifies China's efforts to modernize its payment infrastructure and maintain control over its financial landscape.

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