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Title: Chinese Tech Giants Push Yuan Stablecoins to Challenge Dollar Dominance
Chinese tech giants JD.com and Ant Group are actively lobbying China’s central bank to approve the issuance of yuan-backed stablecoins, aiming to challenge the US dollar’s dominance in digital payments. This bold move is a response to the rapidly declining share of global transactions processed in yuan.
According to recent data, the yuan’s share has plummeted to an unprecedented low of 2.89% in May, while the US dollar maintains a commanding 48% share of all global transactions. Wang Yongli, former deputy head of Bank of China, warned that inefficient yuan payments pose a strategic risk for China, emphasizing the importance of adapting to the rapidly evolving digital payment landscape.
The proposed yuan-backed stablecoins would enable cross-border settlements and international use, allowing companies like JD.com and Ant Group to expand their blockchain payment infrastructure. The companies are preparing to apply for licenses in Hong Kong and Singapore to launch offshore yuan tokens, a move that could have far-reaching implications for the global financial system.
JD.com’s founder, Liu Qiangdong, previously stated that the company plans to obtain stablecoin licenses in all major sovereign currency countries. This ambition is aligned with China’s vision of establishing an international digital yuan operations center in Shanghai, which would allow for a multipolar currency system where multiple currencies support the global economy, diverging from the current dominance of the US dollar and euro.
The Chinese tech giants’ push to develop yuan-backed stablecoins comes as a significant response to the growing dominance of dollar-pegged digital currencies. The current market size is valued at over $258 billion, with Standard Chartered projecting it could reach $2 trillion by 2028.
By challenging the US dollar’s dominance, JD.com and Ant Group aim to strengthen the yuan’s role in global trade while limiting the dollar’s influence.
Source: coincentral.com
