China Halts Ant Group, JD.com Stablecoin Plans in Hong Kong

Chinese regulators have intervened to block ANT Group and JD.com from launching stablecoins in Hong Kong, marking a sharp reversal for companies that had previously embraced the territory's digital currency pilot program. The People's Bank of China and Cyberspace Administration of China ordered the tech giants to halt their initiatives, with central bank officials particularly wary of private firms issuing currency-like instruments.

The MOVE reflects Beijing's determination to maintain tight control over monetary systems, even as other jurisdictions experiment with privately issued digital currencies. Hong Kong's stablecoin issuer application process, launched in August, had attracted significant interest from mainland firms eager to explore blockchain-based financial products.

Former finance vice-minister Zhu Guangyao had advocated for renminbi stablecoins as a counter to dollar dominance, but ex-central bank governor Zhou Xiaochuan later cautioned against speculative risks. The regulatory crackdown underscores the tension between innovation and state control in China's evolving digital currency landscape.