news 
Yuan vs. U.S Dollar – The race to dominate the $2 trillion stablecoin market
The global stablecoin market is poised to reach a staggering $2 trillion by 2028, and China has now set its sights on reclaiming lost ground in this arena. In a bold move, tech giants like JD.com and Ant Group are urging the Chinese central bank to permit the creation of Yuan-backed digital currencies, with Hong Kong serving as a potential hub for these initiatives.
This push is seen by many as China’s attempt to counterbalance the growing influence of USD-pegged stablecoins, which currently account for over 99% of the global market share. According to a recent report by the Bank for International Settlements, Tether (USDT) and Circle’s USDC have established a stronghold in this space.
JD.com and Ant Group are reportedly advocating for the development of Yuan-based stablecoins, with Hong Kong playing a crucial role in these efforts. This comes on the heels of a significant decline in the global payment share of the Yuan, which has fallen to its weakest level in nearly two years, as per SWIFT data.
China’s tech behemoths are seeking licenses in Hong Kong, Singapore, and Luxembourg to expand their blockchain-based payment infrastructure and challenge USD supremacy. JD.com plans to launch a Hong Kong dollar-pegged stablecoin by the end of the year, further solidifying its commitment to this initiative.
The push for Yuan-backed stablecoins gains added significance in light of renewed U.S.-China trade talks, which recently led to a brief surge in Bitcoin’s price. Despite the volatility surrounding these negotiations, China is seeking to capitalize on any potential breakthroughs by reinforcing its digital currency ambitions.
In conclusion, it appears that the battle for dominance in the $2 trillion stablecoin market has officially begun.
Source: ambcrypto.com
