China’s leading tech giants JD.com and Ant Group are actively lobbying Chinese regulators as part of a push to counter the U.S. dollar’s growing digital dominance.
Both companies have urged the People’s Bank of China to authorize the issuance of stablecoins based on the offshore yuan in Hong Kong, sources familiar with the matter told Reuters.
In private talks with the POBC, JD.com has emphasized that offshore yuan stablecoins are urgently necessary to advance the internationalization of the yuan, the sources explained. The same views have been expressed by others.
“It would be a strategic risk if cross-border yuan payment is not as efficient as dollar stablecoins,” said Wang Yongli, co-chairman of Digital China Information Service Group and former vice head of the Bank of China.
“China can no longer avoid taking action,” said Xiao Feng, chairman of crypto exchange operator HashKey, noting that many Chinese exporters are turning to dollar stablecoins as “more overseas merchants are paying in USDT.”
Both lobbyists have previously announced plans to issue stablecoins backed by the Hong Kong dollar, taking advantage of the new legislation set to take effect on August 1.
Ant Group is preparing to apply for stablecoin licenses in Hong Kong, Singapore, and Luxembourg. The move is part of the company’s broader strategy to expand its blockchain-powered cross-border payments network.
JD.com recently revealed plans to launch its own Hong Kong dollar-backed stablecoin by the end of this year, aiming to accelerate transaction speeds and reduce costs for international trade participants, while also exploring support for other fiat-backed stablecoins depending on regulatory approvals.