JD.com and Ant Group urge China’s central bank to approve a yuan-pegged stablecoin
JD.com and Ant Group are pushing for China’s central bank, the People’s Bank of China, to approve a stablecoin linked to the yuan in Hong Kong. They aim to reduce the influence of US dollar-backed digital currencies, especially Tether’s USDT, which has a large 68.2% share in the stablecoin market.
The companies are getting ready to launch stablecoins backed by the Hong Kong dollar when new rules start on August 1. They think that a stablecoin linked to the yuan is important for boosting the global use of the Chinese currency.
Currently, over 99% of stablecoins are tied to the US dollar. Therefore, many Chinese exporters are using USDT for international transactions to steer clear of currency risks and capital controls.
In other words, this trend shows that more people are depending on dollar-backed stablecoins, which creates a challenge for the yuan’s position in the world.
