China’s Big Tech Pushes for Yuan Stablecoin to Challenge USDT Dominance

JD.com and Ant Group are lobbying China's central bank to approve a yuan-pegged stablecoin in Hong Kong, aiming to counter the supremacy of dollar-backed stablecoins like USDT. The MOVE aligns with Beijing's long-term goal of internationalizing the yuan.

Both tech giants plan to issue Hong Kong dollar stablecoins under the city's new crypto regulations effective August 1. However, they argue this isn't sufficient since the HKD remains pegged to the USD, doing little to advance the yuan's global standing.

Tether's USDT currently dominates stablecoin markets, accounting for over 99% of all stablecoin transactions according to Bank for International Settlements data. Chinese firms view an offshore yuan stablecoin as crucial infrastructure for promoting cross-border digital payments in their native currency.