Alibaba’s financial subsidiary, Ant Group, is leading an effort to boost the creation of stubcoins supported by the yuan, with the aim of countering the growing influence of people pinned in the US dollar in international trade. The initiative also participated in Technology JD.com.
Sources close to sharing negotiations with the press said the companies have launched a conversation with the popular Bank of China (PBOC) from Hong Kong to promote the initiative.
This proposal aims to be broadstarting in a special administrative area in Hong Kong, where a new law on stable coins will come into effect on August 1st.
The project, approved by Hong Kong’s Legislative Council on May 21, seeks to regulate stubcoin activities such as issuance, offers and marketing with the aim of protecting investors and ensuring financial stability.
While ANT and JD.com are already preparing to launch stable coins backed by Hong Kong dollars, they believe that Yuan-linked assets are more strategic to boost global adoption and reduce their reliance on US currency.
The main concern of these companies is the rapid growth of dollar-related stubcoins (USD), like Tethers (USDT), which control more than 60% of the market capitalization of these assets. This raises concrete challenges for the original internationalization.
From a JD.com perspective, original use in international trade is at risk if efficient alternatives are not developed as the dominant silly thing at present.
They argue that relying on the Hong Kong dollar, which is directly related to US currency, has not contributed to strengthening the original role in the digital financial ecosystem.
Challenges and opportunities for original internationalization
The advancements in stubcoins linked to the dollar have already been reflected in the commercial practices of many Chinese companies. “China cannot prevent action,” says Xiao Feng, president of Hong Kong-based Hashkey cryptocurrency exchange.
Therefore, the businessman said More and more Chinese exporters rely on stablecoins in dollars“Because there is an increasing number of foreign merchants sending payments through USDT.”
Sector experts and actors agree The stubcoin boom represents both a challenge and an opportunity for China. Wang Yongli, former subdirector of the Bank of China, recently warned that if the original country’s payments do not reach the efficiency of digital equivalents in dollars, the country could face strategic risks with the aim of internationalizing its currency.
Huang Yiping, an advisor to Banco-popular China, Huang Yiping, recently said that approval of Stablecoins in Yuanness, Hong Kong, could be real.
In this regard, From Alibaba, Ant Group is preparing an application to obtain a Stablcoins license In addition to advancing the development of Yuan’s stable currency for international markets in both Hong Kong and Singapore.
JD.com president Richard Liu has also announced plans to request similar licenses from major global economies with the aim of promoting currency exchanges and cross-border payment exchanges.
Meanwhile, the US is taking critical steps to integrate currency acquisition in the cryptographic space.
As reported by Cryptonotics, the Senate recently approved the National Innovation Orientation and Establishment Act of Stablecoins (Genius), an initiative that establishes strict requirements for emitters of these assets, ensuring that it is 100% supported by dollars or equivalent liquid assets and promotes adoption.
The law seeks to position the United States as a global leader in digital financial innovation, reflecting bipartisan support and is moving towards the House for a final assessment.