JD.com and Ant Group are lobbying the People’s Bank of China (PBOC) for the approval of yuan-based stablecoins to enhance the currency's global trade role and compete with US dollar-pegged tokens. The two companies argue that offshore yuan stablecoins could be beneficial if launched in Hong Kong. Discussions with the PBOC have reportedly been positive, with JD.com planning to apply for stablecoin licenses in Hong Kong and Singapore. The urgency for these stablecoins arises from a decline in the yuan’s share of global payments, which recently fell to 2.89%, while the dollar holds 48%. Industry experts warn that lagging cross-border yuan payment efficiency compared to dollar stablecoins poses a strategic risk for China. Meanwhile, Hong Kong aims to regulate stablecoins through a new licensing framework to enhance real-world use cases. JD.com's founder has expressed interest in stablecoin licenses in major countries, aligning with China’s vision of a multipolar currency system that reduces reliance on the US dollar.

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