Beijing “brakes the brakes” on private cryptocurrencies, Ant Group must stop

Ant Group and JD.com have just been ordered to postpone the issuance of stablecoins, as Beijing asserts that only the state has the right to issue money in the digital era.

Chinese tech giants Ant Group and JD.com have been ordered to halt plans to issue stablecoins.

The decision comes from the People's Bank of China (PBoC) and mainland regulators to protect the state's monopoly on issuing money.

Previously, Hong Kong planned to become a digital asset hub by allowing businesses to apply for stablecoin licenses.

Ant Group and JD.com quickly filed applications, hoping to promote the internationalization of the yuan through digital currencies.

However, the PBoC warned that private stablecoins could pose financial risks, threatening monetary sovereignty and the e-CNY project.

Former PBoC Governor Zhou Xiaochuan believes stablecoins are unnecessary when China already has more efficient Alipay and WeChat Pay.

Analysts say Beijing could develop a “state version” of the stablecoin to maintain control.

This move shows that China wants to innovate in financial technology, but does not accept “privatization” of currency.

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