Ant Group and JD.com Halt Hong Kong Stablecoin Initiatives Amid Beijing’s Sovereignty Concerns
Chinese tech giants ANT Group and JD.com have suspended plans to issue stablecoins in Hong Kong following heightened regulatory scrutiny from Beijing. The People's Bank of China (PBoC) has raised sovereignty concerns over private firms issuing currencies, signaling a shift from earlier enthusiasm for renminbi-denominated stablecoins as a counter to U.S. dollar dominance.
The PBoC's caution reflects broader unease about private companies wielding 'the ultimate right of coinage.' This stance contrasts with previous strategic discussions where some officials viewed Hong Kong's pilot programs as a potential avenue to challenge dollar hegemony. Former Vice Minister of Finance Zhu Guangyao had explicitly framed stablecoins as part of America's toolkit for maintaining global monetary supremacy.
