Chinese Big Tech Companies Urge Central Bank to Approve Yuan-Based Stablecoin Issuance
Summary
- Chinese big tech companies JD.com and Ant Group are reportedly lobbying the central bank for approval to issue a yuan-based stablecoin.
- The companies stated that with the new law coming into effect in Hong Kong on August 1, issuing a yuan stablecoin, following the Hong Kong dollar stablecoin, is an urgent priority.
- This move is interpreted as China's intention to strengthen the internationalization of the yuan in the virtual asset market, in response to the global expansion of U.S. dollar stablecoins.
It has been reported that major Chinese tech companies, JD.com and Alibaba's affiliate Ant Group, are lobbying the Chinese central bank for approval to issue a stablecoin based on the yuan.
According to Reuters on the 3rd (local time), JD.com and Ant Group recently held a private meeting with the People's Bank of China (PBoC), requesting permission to issue a yuan-pegged stablecoin in Hong Kong. Though they had planned to launch a Hong Kong dollar stablecoin with the new law coming into effect in Hong Kong on August 1, they reportedly argued that issuing a yuan-based stablecoin was more urgent.
This move is seen as China's effort to actively promote the internationalization of the yuan even in the virtual asset (cryptocurrency) sector, as the influence of U.S. dollar-based stablecoins continues to grow globally. Wang Yongli, co-chairman of Digital China Information Service Group, suggested the importance of issuing a yuan stablecoin, stating, "The global expansion of U.S. dollar stablecoins is posing a new challenge to yuan internationalization."
Heecheol Yang
heecheol@bloomingbit.ioHello, I'm a reporter at bloomingbit
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