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Chinese tech giants JD.com and Ant Group have taken the initiative to lobby China’s central bank in order to allow the issuance of yuan-backed stablecoins. This move aims to challenge the dominance of the US dollar in digital payments.
The data reveals that the yuan’s share of global payments has dropped significantly, falling to 2.89% in May, while the US dollar maintains a commanding 48% market share according to Swift data. This trend is expected to continue as Chinese exporters increasingly prefer USDT for cross-border settlements over traditional yuan payments. The acceleration of this trend has fueled tech giants’ efforts to issue their own stablecoins.
JD.com and Ant Group have met with officials from the People’s Bank of China in private sessions, arguing that the need for yuan stablecoins is urgent in order to promote the currency’s international use. According to Wang Yongli, a former deputy head of the Bank of China, inefficient yuan payments pose a strategic risk to China’s economy. He warns that if cross-border yuan payments remain less efficient than dollar stablecoins, it will hinder China’s global trade capabilities.
Both companies are preparing to apply for stablecoin licenses in Hong Kong and Singapore, aiming to launch offshore yuan tokens. In addition, JD.com has declared plans to pursue licenses in all major sovereign currency countries. This move demonstrates the company’s ambition to broaden its blockchain payment infrastructure across multiple jurisdictions.
The current stablecoin market size has exceeded $258 billion, but it is expected to grow exponentially to reach a staggering $2 trillion by 2028 according to Standard Chartered projections.
Source: coincentral.com
