Two of China’s largest tech companies, JD.com and Ant Group have pushed for the authorization of yuan-based stablecoins, Reuters reported.
The goal would be for the coins to counter to the growing global influence of USD- and EUR-pegged stablecoins. In particular, JD.com has argued that an offshore yuan stablecoin will be a critical tool to promote the yuan’s use internationally.
Retail, payment giants
JD.com is an e-commerce company, and China’s largest retailer by revenue. Ant Group is an Alibaba affiliate which operates Alipay, the world’s largest mobile digital payment platform.
If accepted by the authorities, the lobbying would highlight a dramatic shift for Chinese policy around crypto. Cryptocurrency transactions are currently banned in China, based on unease about the potential for financial crime or instability.
Hong Kong framework
As the dollar becomes increasingly influential within the digital currency landscape, Beijing may be open to considering options to exert its own influence. Hong Kong’s regulatory framework for stablecoins and crypto is set to go into effect on 1 August.
Both companies involved in the lobbying effort are planning to issue stablecoins based on the Hong Kong dollar once the legislation is enacted, according to Reuters.
US-dominated market
Currently, the global stablecoin market is valued at around $259 billion, according to data from CoinMarketCap. Over 99% of that is based on the USD.
