JD.com and Ant Group in China put pressure on the central bank to allow Stablecoins based on the Yuan to counter the rise of digital currencies linked to an American dollar, Reuters reported on Friday.
They offer the launch of Stablecoins in Hong Kong supported by the Yuan Offshore, aimed at stimulating the world role of Chinese currency.
The two companies are already planning to issue stablescoins supported in Hong Kong dollars once local legislation begins on August 1.
However, JD.com pleads for stablescoins in Yuan Offshore as a strategic decision to support the internationalization of the Yuan. The thrust reflects the broader ambitions of China to challenge American domination in digital finance and widen the scope of its currency in the world.
China has a long-standing ban on cryptocurrency transactions, which extends to most private stablecoins. This prohibition, particularly intensified in 2021, was motivated by concerns concerning financial crime, capital flight and potential threats to financial stability.
As a counter, China has paid resources in the development and management of its own digital yuan (E-CNY). This Central Bank digital currency (CBDC) is considered a way to modernize your payment system and exercise greater control over your financial landscape.
Read more: Ant International de Jack Ma’s is looking for Stablecoin licenses in Hong Kong, Singapore: Bloomberg
