Alibaba presses China to fight the dollar with Yuan Stablcoins

Ant Group, Alibaba’s financial subsidiary, leads efforts to boost the creation of Stablcoins backed by yuan, with the aim of counteracting the growing influence of those anchored to the US dollar in international trade. To this initiative has also joined the technological JD.com.

According to sources close to shared negotiations to the press, both companies have started conversations with Banco Popular de China (PBOC) to promote this initiative from Hong Kong, Reuters reported.

The proposal seeks to broadstarting in the special administrative region of Hong Kong, where a new Law on Stable Coins will enter into force on August 1.

This project, approved by the Hong Kong Legislative Council on May 21, seeks to regulate Stablecoins activities, such as its issuance, offer and marketing, with the aim of protecting investors and guaranteeing financial stability.

Both ant and JD.com are already preparing to launch stable coins backed by the Hong Kong dollar, although they consider that an asset linked to Yuan would be more strategic to boost its global adoption and reduce dependence on the US currency.

The main concern of these companies is the rapid growth of stablcoins linked to the dollar (USD), like Tether (USDT) that dominates more than 60% of the market capitalization of these assets. This raises concrete challenges for the internationalization of Yuan.

From the perspective of JD.com, the use of Yuan in international trade is in danger if alternatives as efficient are not developed as the currently dominant stablecoins.

They argue that relying on the Hong Kong dollar, whose parity is directly linked to the US currency, does not contribute to strengthening the role of Yuan in the digital financial ecosystem.

Challenges and opportunities for the internationalization of Yuan

The progress of the stablecoins linked to the dollar is already reflected in the commercial practices of many Chinese companies. According to Xiao Feng, president of the Hashkey Cryptocurrency Exchange, based in Hong Kong, “China has reached a point where you can no longer avoid taking action.”

Thus, the businessman said An increasing number of Chinese exporters resort to Stablecoins in dollarssince “the number of foreign merchants who send payments in USDT is increasing.”

Experts and actors in the sector agree that The boom of the stablcoins represents both a challenge and an opportunity for China. Wang Yongli, former sub -director of the Bank of China, recently warned that, if cross -border payments in Yuan do not reach the efficiency of their digital equivalents in dollars, the country could face a strategic risk in its objective of internationalizing its currency.

The advisor of Banco Popular de China, Huang Yiping, recently said that the authorization of Stablecoins in Yuanes from Hong Kong is a real possibility.

In this context, From Alibaba, Ant Group is preparing applications to obtain Stablcoins licenses In both Hong Kong and Singapore, in addition to advancing in the development of stable currencies in Yuan for international markets.

For his part, Richard Liu, president of JD.com, has also announced plans to request similar licenses in the main world economies, with the aim of facilitating the exchange of currency exchange and cross -border payments.

Meanwhile, the United States takes decisive steps to consolidate the mastery of its currency in the space of cryptoactives.

As Cryptonotics reported, recently the Senate approved the National Innovation Orientation and Establishment Law for Stablecoins (Genius), an initiative that establishes strict requirements for the emitters of these assets, ensuring that they are 100 % supported by dollars or equivalent liquid assets and promoting their adoption.

This legislation, which seeks to position the United States as the world leader in digital financial innovation, reflects bipartisan support and now advances towards the House of Representatives for its final evaluation.