Latest news with #WangYongli
Arabian Post
a day ago
- Business
- Arabian Post
Tech Titans Seek Offshore Yuan Stablecoin Approval
JD. com and Ant Group have formally submitted proposals to the People's Bank of China seeking approval for yuan-pegged stablecoin issuance, marking a key step in Beijing's efforts to internationalise its currency. Ant Group is also preparing licence applications in Hong Kong and Singapore to deploy offshore renminbi stablecoins beyond mainland China. The push comes after the Hong Kong legislature enacted a stablecoin licensing framework on 21 May 2025, with regulations taking effect from August. Under the new rules, issuers of Hong Kong dollar–referenced digital tokens must secure authorisation from the Hong Kong Monetary Authority. JD. com has suggested beginning issuance in Hong Kong before piloting operations in Chinese free-trade zones—a phased approach that has been met with encouraging feedback from regulators. The strategic backdrop for this development includes a decline in the yuan's share of global payments to 2.89% in May—the lowest in nearly two years—while dollar-pegged stablecoins control approximately 99% of the market. Former Bank of China deputy head Wang Yongli cautioned that unless yuan-based solutions gain traction, China could risk lagging behind if cross-border payments remain less efficient than dollar-denominated cryptocurrency options. ADVERTISEMENT Ant Group's global strategy is already in motion. Ant International aims to apply for licences under the new Hong Kong regime from 1 August, and then proceed to Singapore and Luxembourg. Meanwhile, JD. com intends to seek approvals in multiple major currency jurisdictions, citing ambitions to reduce cross-border settlement costs by up to 90% and speed up transaction times to under 10 seconds. Hong Kong's stablecoin ordinance emphasizes reserve management, redemptions and robust risk controls, operating on the principle of 'same activity, same risks, same regulation'. The region's new LEAP framework is designed to nurture asset tokenisation and stablecoin issuance, compelling global players to participate. Remaining constraints on audience trust and onshore–offshore integration persist. China's strict capital controls may hinder scalable adoption of offshore yuan stablecoins, and questions remain over transparency in reserve backing, redemption mechanisms, and potential surveillance—echoing critiques levelled against e‑CNY, China's domestic central bank digital currency. Nonetheless, analysts argue that successfully launching an offshore yuan stablecoin could enhance digital renminbi's global footprint without conflicting with mainland crypto restrictions. It would offer exporters an alternative to dollar-linked tokens and deepen the yuan's digital payment infrastructure. President Trump's support for dollar-pegged stablecoin regulation in the United States has accelerated momentum overseas. China's tech giants appear intent on ensuring the yuan remains a competitive currency in the next-generation digital economy. Key stakeholders, including Morgan Stanley and Crypto HK, suggest that Hong Kong could function as a vital testbed, providing a bridge between mainland policy and the global crypto market. With licence windows opening this August and multi-jurisdictional applications in progress, the ball is now in the court of global financial regulators. Approval of these proposals could mark a significant shift in digital finance, elevating the yuan's status in the evolving ecosystem of global trade and finance.
The Hindu
2 days ago
- Business
- The Hindu
China's tech giants lobby for offshore yuan stablecoin, sources say
China's tech giants and Alibaba affiliate Ant Group are urging the central bank to authorise yuan-based stablecoins to counter the growing sway of U.S. dollar-linked cryptocurrencies, people with direct knowledge of the discussions said. The two firms propose China allow the launch of stablecoins in Hong Kong pegged to its offshore yuan to help promote global use of the Chinese currency and fend off the dollar's growing digital influence, the two sources said. The moves come as Hong Kong races the United States in setting up a regulatory framework for stablecoins, competing for a greater reach in global digital finance and trade. Their lobbying efforts, if successful, would mark a major shift in the way Beijing views cryptocurrencies, which it banned in 2021, and could reshape China's strategy in promoting international use of the yuan. Stablecoins are digital tokens, in the form of cryptocurrencies pegged to liquid assets, so far mostly the U.S. dollar but also in some cases gold or other currencies. Their underlying blockchain technology enables instant, borderless and round-the-clock transfer of funds at low cost, giving them the potential to disrupt traditional cross-border payment systems. Both and Ant already plan to issue stablecoins backed by the Hong Kong dollar, after the island's new legislation takes effect on August 1. But in closed-door discussions with the People's Bank of China, has argued that offshore yuan stablecoins are urgently needed as a tool to promote yuan internationalisation, the sources told Reuters. Such a view has also been expressed by other industry players. "The global expansion of U.S. dollar stablecoins is posing fresh challenges to yuan internationalisation," Wang Yongli, co-chairman of Digital China Information Service Group said in an article posted on his social media account last month. "It would be a strategic risk if cross-border yuan payment is not as efficient as dollar stablecoins," said Wang, former vice head of Bank of China. The PBOC, and Ant did not immediately respond to Reuters requests for comment. The global stablecoin market is currently small at about $247 billion, according to crypto data provider CoinGecko. However, Standard Chartered Bank estimates it could grow to $2 trillion by 2028. Over 99% of stablecoins are U.S. dollar-denominated, according to the Bank for International Settlements. China has long harboured ambitions for the yuan to be a global currency, similar to the euro or dollar and reflecting its weight as the world's second-biggest economy. One roadblock to this aim, however, is its reluctance to remove tight capital controls. The yuan's share as a global payment currency fell to 2.89% in May, the lowest in almost two years, according to payment platform SWIFT. The dollar commands a 48.46% market share. "China has reached a point where it can no longer avoid taking action," said Xiao Feng, chairman of Hong Kong-based crypto exchange operator HashKey. Many Chinese exporters now use dollar stablecoins as "more and more overseas merchants are sending payments in USDT", he said, referring to the world's more popular stablecoin Tether. Several exporters told Reuters capital controls at home, geopolitical tensions and the risks of currency volatility in smaller emerging markets have spurred the shift into stablecoins. Crypto HK, Hong Kong's biggest crypto OTC exchange, said the monthly volume of trading in the USDT token by its Chinese clients for trade settlement purposes has jumped five-fold since 2021. Marking a major U.S. shift, President Donald Trump backed stablecoins days after his inauguration in January and is establishing a regulatory framework that helps legitimise dollar-pegged cryptocurrencies. Even in China, where cryptocurrencies remain banned, policymakers are becoming increasingly interested in stablecoins. PBOC governor Pan Gongsheng said last month the boom in digital currencies and stablecoins poses huge challenges to financial regulation. PBOC advisor Huang Yiping told local media in a recent interview that an offshore yuan stablecoin in Hong Kong is "a possibility". Ant is preparing to apply for stablecoin licences in both Hong Kong and Singapore, one of the sources said. Ant is also preparing for offshore yuan stablecoins, he said. chairman Richard Liu has also disclosed plans to apply for such licenses in major currency countries globally, in a bid to facilitate foreign exchange and cross-border payment. In discussions with the PBOC, argued a yuan-pegged stablecoin was needed because the Hong Kong dollar is pegged to the U.S. dollar, which does not help promote the yuan's use in trade, one of the sources said. has proposed China allow yuan stablecoin issuance in Hong Kong, before expanding the pilot scheme to offshore markets within China's free trade zones, said a company source, adding the suggestion had been well received by regulators.
Business Times
2 days ago
- Business
- Business Times
China's tech giants lobby for offshore renminbi stablecoin: sources
[BEIJING] China's tech giants and Alibaba affiliate Ant Group are urging the central bank to authorise yuan-based stablecoins to counter the growing sway of US dollar-linked cryptocurrencies, people with direct knowledge of the discussions said. The two firms propose China allow the launch of stablecoins in Hong Kong pegged to its offshore renminbi to help promote global use of the Chinese currency and fend off the US dollar's growing digital influence, the two sources said. The moves come as Hong Kong races the US in setting up a regulatory framework for stablecoins, competing for a greater reach in global digital finance and trade. Their lobbying efforts, if successful, would mark a major shift in the way Beijing views cryptocurrencies, which it banned in 2021, and could reshape China's strategy in promoting international use of the yuan. Stablecoins are digital tokens, in the form of cryptocurrencies pegged to liquid assets, so far mostly the US dollar but also in some cases gold or other currencies. Their underlying blockchain technology enables instant, borderless and round-the-clock transfer of funds at low cost, giving them the potential to disrupt traditional cross-border payment systems. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Both and Ant already plan to issue stablecoins backed by the Hong Kong US dollar, after the island's new legislation takes effect on Aug 1. But in closed-door discussions with the People's Bank of China, has argued that offshore renminbi stablecoins are urgently needed as a tool to promote renminbi internationalisation, the sources told Reuters. Such a view has also been expressed by other industry players. 'The global expansion of US dollar stablecoins is posing fresh challenges to renminbi internationalisation,' Wang Yongli, co-chairman of Digital China Information Service Group said in an article posted on his social media account last month. 'It would be a strategic risk if cross-border renminbi payment is not as efficient as US dollar stablecoins,' said Wang, former vice head of Bank of China. The PBOC, and Ant did not immediately respond to Reuters requests for comment. US dollar dominates The global stablecoin market is currently small at about US$247 billion, according to crypto data provider CoinGecko. However, Standard Chartered Bank estimates it could grow to US$2 trillion by 2028. Over 99 per cent of stablecoins are US dollar-denominated, according to the Bank for International Settlements. China has long harboured ambitions for the renminbi to be a global currency, similar to the euro or US dollar and reflecting its weight as the world's second-biggest economy. One roadblock to this aim, however, is its reluctance to remove tight capital controls. The yuan's share as a global payment currency fell to 2.89 per cent in May, the lowest in almost two years, according to payment platform SWIFT. The US dollar commands a 48.46 per cent market share. 'China has reached a point where it can no longer avoid taking action,' said Xiao Feng, chairman of Hong Kong-based crypto exchange operator HashKey. Many Chinese exporters now use US dollar stablecoins as 'more and more overseas merchants are sending payments in USDT', he said, referring to the world's more popular stablecoin Tether. Several exporters told Reuters capital controls at home, geopolitical tensions and the risks of currency volatility in smaller emerging markets have spurred the shift into stablecoins. Crypto HK, Hong Kong's biggest crypto OTC exchange, said the monthly volume of trading in the USDT token by its Chinese clients for trade settlement purposes has jumped five-fold since 2021. Inevitable? Marking a major US shift, President Donald Trump backed stablecoins days after his inauguration in January and is establishing a regulatory framework that helps legitimise US dollar-pegged cryptocurrencies. Even in China, where cryptocurrencies remain banned, policymakers are becoming increasingly interested in stablecoins. PBOC governor Pan Gongsheng said last month the boom in digital currencies and stablecoins poses huge challenges to financial regulation. PBOC advisor Huang Yiping told local media in a recent interview that an offshore renminbi stablecoin in Hong Kong is 'a possibility'. Ant is preparing to apply for stablecoin licences in both Hong Kong and Singapore, one of the sources said. Ant is also preparing for offshore renminbi stablecoins, he said. chairman Richard Liu has also disclosed plans to apply for such licences in major currency countries globally, in a bid to facilitate foreign exchange and cross-border payment. In discussions with the PBOC, argued a yuan-pegged stablecoin was needed because the Hong Kong US dollar is pegged to the US dollar, which does not help promote the yuan's use in trade, one of the sources said. has proposed China allow renminbi stablecoin issuance in Hong Kong, before expanding the pilot scheme to offshore markets within China's free trade zones, said a company source, adding the suggestion had been well received by regulators. REUTERS
Economic Times
2 days ago
- Business
- Economic Times
China's tech giants lobby for offshore yuan stablecoin, sources say
iStock China's tech giants and Alibaba affiliate Ant Group are urging the central bank to authorise yuan-based stablecoins to counter the growing sway of US dollar-linked cryptocurrencies, people with direct knowledge of the discussions said. The two firms propose China allow the launch of stablecoins in Hong Kong pegged to its offshore yuan to help promote global use of the Chinese currency and fend off the dollar's growing digital influence, the two sources said. The moves come as Hong Kong races the United States in setting up a regulatory framework for stablecoins, competing for a greater reach in global digital finance and trade. Their lobbying efforts, if successful, would mark a major shift in the way Beijing views cryptocurrencies, which it banned in 2021, and could reshape China's strategy in promoting international use of the yuan. Stablecoins are digital tokens, in the form of cryptocurrencies pegged to liquid assets, so far mostly the U.S. dollar but also in some cases gold or other currencies. Their underlying blockchain technology enables instant, borderless and round-the-clock transfer of funds at low cost, giving them the potential to disrupt traditional cross-border payment systems. Both and Ant already plan to issue stablecoins backed by the Hong Kong dollar, after the island's new legislation takes effect on August 1. But in closed-door discussions with the People's Bank of China, has argued that offshore yuan stablecoins are urgently needed as a tool to promote yuan internationalisation, the sources told Reuters. Such a view has also been expressed by other industry players. "The global expansion of U.S. dollar stablecoins is posing fresh challenges to yuan internationalisation," Wang Yongli, co-chairman of Digital China Information Service Group said in an article posted on his social media account last month. "It would be a strategic risk if cross-border yuan payment is not as efficient as dollar stablecoins," said Wang, former vice head of Bank of China. The PBOC, and Ant did not immediately respond to Reuters requests for comment. Dollar dominates The global stablecoin market is currently small at about $247 billion, according to crypto data provider CoinGecko. However, Standard Chartered Bank estimates it could grow to $2 trillion by 2028. Over 99% of stablecoins are U.S. dollar-denominated, according to the Bank for International Settlements. China has long harboured ambitions for the yuan to be a global currency, similar to the euro or dollar and reflecting its weight as the world's second-biggest economy. One roadblock to this aim, however, is its reluctance to remove tight capital controls. The yuan's share as a global payment currency fell to 2.89% in May, the lowest in almost two years, according to payment platform SWIFT. The dollar commands a 48.46% market share. "China has reached a point where it can no longer avoid taking action," said Xiao Feng, chairman of Hong Kong-based crypto exchange operator HashKey. Many Chinese exporters now use dollar stablecoins as "more and more overseas merchants are sending payments in USDT", he said, referring to the world's more popular stablecoin Tether. Several exporters told Reuters capital controls at home, geopolitical tensions and the risks of currency volatility in smaller emerging markets have spurred the shift into stablecoins. Crypto HK, Hong Kong's biggest crypto OTC exchange, said the monthly volume of trading in the USDT token by its Chinese clients for trade settlement purposes has jumped five-fold since 2021. Inevitable? Marking a major U.S. shift, President Donald Trump backed stablecoins days after his inauguration in January and is establishing a regulatory framework that helps legitimise dollar-pegged cryptocurrencies. Even in China, where cryptocurrencies remain banned, policymakers are becoming increasingly interested in stablecoins. PBOC governor Pan Gongsheng said last month the boom in digital currencies and stablecoins poses huge challenges to financial regulation. PBOC advisor Huang Yiping told local media in a recent interview that an offshore yuan stablecoin in Hong Kong is "a possibility". Ant is preparing to apply for stablecoin licences in both Hong Kong and Singapore, one of the sources said. Ant is also preparing for offshore yuan stablecoins, he said. chairman Richard Liu has also disclosed plans to apply for such licenses in major currency countries globally, in a bid to facilitate foreign exchange and cross-border payment. In discussions with the PBOC, argued a yuan-pegged stablecoin was needed because the Hong Kong dollar is pegged to the U.S. dollar, which does not help promote the yuan's use in trade, one of the sources said. has proposed China allow yuan stablecoin issuance in Hong Kong, before expanding the pilot scheme to offshore markets within China's free trade zones, said a company source, adding the suggestion had been well received by regulators. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Can this cola maker get back bubble valuation pricked by Ambani? Darkness at noon: Can this reform succeed after failing four times? Zepto has slowed, and Aadit Palicha needs more than a big fund raise to fix it Why Sebi must give up veto power over market infra institutions Stock Radar: SBI stock breaks out from Symmetrical Triangle pattern; what should investors do with this Sensex stock? 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New Straits Times
2 days ago
- Business
- New Straits Times
China's tech giants lobby for offshore yuan stablecoin, sources say
KUALA LUMPUR: China's tech giants and Alibaba affiliate Ant Group are urging the central bank to authorise yuan-based stablecoins to counter the growing sway of US dollar-linked cryptocurrencies, people with direct knowledge of the discussions said. The two firms propose that China allow the launch of stablecoins in Hong Kong pegged to its offshore yuan to help promote global use of the Chinese currency and fend off the dollar's growing digital influence, the two sources said. The moves come as Hong Kong races the United States in setting up a regulatory framework for stablecoins, competing for a greater reach in global digital finance and trade. Their lobbying efforts, if successful, would mark a major shift in the way Beijing views cryptocurrencies — which it banned in 2021 — and could reshape China's strategy in promoting international use of the yuan. Stablecoins are digital tokens, in the form of cryptocurrencies pegged to liquid assets, so far mostly the US dollar but also in some cases gold or other currencies. Their underlying blockchain technology enables instant, borderless and round-the-clock transfer of funds at low cost, giving them the potential to disrupt traditional cross-border payment systems. Both and Ant already plan to issue stablecoins backed by the Hong Kong dollar, after the island's new legislation takes effect on August 1. But in closed-door discussions with the People's Bank of China (PBOC), has argued that offshore yuan stablecoins are urgently needed as a tool to promote yuan internationalisation, the sources told Reuters. Such a view has also been expressed by other industry players. "The global expansion of US dollar stablecoins is posing fresh challenges to yuan internationalisation," Wang Yongli, co-chairman of Digital China Information Service Group, said in an article posted on his social media account last month. "It would be a strategic risk if cross-border yuan payment is not as efficient as dollar stablecoins," said Wang, former vice head of Bank of China. The PBOC, and Ant did not immediately respond to Reuters' requests for comment. Dollar dominates The global stablecoin market is currently small at about US$247 billion, according to crypto data provider CoinGecko. However, Standard Chartered Bank estimates it could grow to US$2 trillion by 2028. Over 99 per cent of stablecoins are US dollar-denominated, according to the Bank for International Settlements. China has long harboured ambitions for the yuan to be a global currency, similar to the euro or dollar and reflecting its weight as the world's second-biggest economy. One roadblock to this aim, however, is its reluctance to remove tight capital controls. The yuan's share as a global payment currency fell to 2.89 per cent in May, the lowest in almost two years, according to payment platform SWIFT. The dollar commands a 48.46 per cent market share. "China has reached a point where it can no longer avoid taking action," said Xiao Feng, chairman of Hong Kong-based crypto exchange operator HashKey. Many Chinese exporters now use dollar stablecoins as "more and more overseas merchants are sending payments in USDT," he said, referring to the world's most popular stablecoin, Tether. Several exporters told Reuters capital controls at home, geopolitical tensions and the risks of currency volatility in smaller emerging markets have spurred the shift into stablecoins. Crypto HK, Hong Kong's biggest crypto over-the-counter (OTC) exchange, said the monthly volume of trading in the USDT token by its Chinese clients for trade settlement purposes has jumped five-fold since 2021. Inevitable? Marking a major US shift, President Donald Trump backed stablecoins days after his inauguration in January and is establishing a regulatory framework that helps legitimise dollar-pegged cryptocurrencies. Even in China, where cryptocurrencies remain banned, policymakers are becoming increasingly interested in stablecoins. PBOC governor Pan Gongsheng said last month the boom in digital currencies and stablecoins poses huge challenges to financial regulation. PBOC adviser Huang Yiping told local media in a recent interview that an offshore yuan stablecoin in Hong Kong is "a possibility". Ant is preparing to apply for stablecoin licences in both Hong Kong and Singapore, one of the sources said. Ant is also preparing for offshore yuan stablecoins, he said. chairman Richard Liu has also disclosed plans to apply for such licences in major currency countries globally, in a bid to facilitate foreign exchange and cross-border payments. In discussions with the PBOC, argued a yuan-pegged stablecoin was needed because the Hong Kong dollar is pegged to the US dollar, which does not help promote the yuan's use in trade, one of the sources said. has proposed China allow yuan stablecoin issuance in Hong Kong, before expanding the pilot scheme to offshore markets within China's free trade zones, said a company source, adding the suggestion had been well received by regulators.
