China Tightens Grip on Digital Currency as Ant Group and JD.com Halt Stablecoin Projects

Beijing's intervention has forced Alibaba-backed ANT Group and JD.com to suspend their yuan-pegged stablecoin initiatives. The directive extends to financial institutions and think tanks, barring them from promoting private digital currency models. Only the state-backed digital yuan remains sanctioned under current policy.

The crackdown reflects China's determination to maintain sovereign control over monetary innovation. Private sector experiments with stablecoins—seen as potential challengers to central bank authority—are being systematically curtailed. This development deals a significant blow to corporate ambitions in China's digital asset space.

Market observers note the decision reinforces China's preference for centralized financial technologies over decentralized alternatives. While this may temporarily dampen innovation, it consolidates the digital yuan's position as the country's exclusive blockchain-based currency.