China’s Tech Giants Push for Yuan-Based Stablecoins Amid Global Crypto Race. By ChainFabricNews

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 In a major twist to China's hardline crypto stance, some of the country's biggest tech players—JD.com and Ant Group—are now pushing for a yuan-pegged stablecoin to be issued offshore. The move is seen as a smart response to the growing dominance of dollar-based cryptocurrencies and a big step toward globalizing China’s digital economy.

Why the Sudden Change?

For years, China has been known for its strict ban on crypto. But behind the scenes, things are starting to shift. According to a recent report, regulators in Shanghai held a closed-door meeting with nearly 70 officials to discuss the future of stablecoins—digital tokens that are usually tied to fiat currencies like the US dollar or, in this case, the Chinese yuan.

The tech giants argue that a stablecoin backed by the Chinese yuan could help reduce dependence on the U.S. dollar, which currently dominates international digital transactions. In fact, over 99% of the global stablecoin market is based on the U.S. dollar. Chinese businesses are feeling left out—and that’s where JD.com and Ant Group want to step in.

Hong Kong: The Launchpad

With mainland China maintaining a strict ban on crypto, all eyes are now on Hong Kong, which is set to introduce its own stablecoin regulations starting August 1, 2025. JD.com and Ant Group are expected to apply for licenses there, hoping to launch the first offshore yuan-pegged stablecoins under this new framework.

This could be a game-changer. Hong Kong’s new rules will allow for fully regulated stablecoin projects, which means these yuan-backed coins could be used safely for international trade and financial transactions—something businesses have been asking for.

What’s in It for China?

By issuing a yuan stablecoin, China could finally make a serious move to internationalize its currency—a long-time goal of the Chinese government. Right now, only about 2.89% of global transactions are done in yuan, compared to nearly 50% in U.S. dollars. A digital yuan stablecoin could help boost that number by making it easier and faster for companies around the world to use the Chinese currency.

For JD.com and Ant Group, the benefits go beyond national pride. A regulated stablecoin could unlock new revenue streams—from processing fees to lending services—and give them an edge in global e-commerce and trade.

Still Some Risks

Despite the excitement, regulators remain cautious. China’s central bank is concerned about financial risks and scams, especially with stablecoins still being misunderstood by many. There are also worries that stablecoins could make it easier to dodge China’s capital controls if not properly regulated.

However, the tone has clearly changed. Instead of banning everything, Chinese officials are now talking about regulating and experimenting—a big shift from the past.

Looking Ahead

If all goes well, we could see the first yuan-pegged stablecoins launched from Hong Kong before the end of 2025. This would mark a turning point not just for China’s crypto strategy but also for the global stablecoin market.

As the world slowly shifts toward digital finance, China is finally finding a way to re-enter the game—on its own terms.

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