Chinese Tech Giants Push for Yuan-Backed Stablecoins to Challenge Dollar Dominance

JD.com and ANT Group are lobbying China's central bank for approval to issue yuan-pegged stablecoins, aiming to counter the global influence of dollar-denominated alternatives. The move signals a strategic shift in the digital currency arena, where China seeks to assert monetary sovereignty amid rising crypto adoption.

Stablecoins have become the backbone of decentralized finance, with Tether's USDT and Circle's USDC commanding nearly 90% of the $150 billion market. A successful yuan-backed entry could reshape cross-border settlements and digital commerce, particularly in Belt and Road Initiative countries.

The proposal arrives as regulators worldwide scrutinize stablecoin issuers. Unlike private dollar-pegged tokens, China's state-linked approach WOULD likely involve strict capital controls and centralized oversight—a model that may appeal to emerging markets seeking dollar alternatives.