Chinese tech giants halt plans to issue stablecoins

Photo caption — Illustration of Bitcoin cryptocurrency. Photo: REUTERS/TTXVN

Major Chinese tech companies including Ant Group and JD.com have halted plans to launch stablecoins in Hong Kong after receiving instructions from regulators in Beijing, the Financial Times reported on October 19. The move shows the Chinese government's caution in the face of the trend of digital currencies controlled by the private sector.

Alibaba subsidiary Ant Group and JD.com had previously announced that they would participate in a stablecoin pilot program launched by the Hong Kong Monetary Authority (HKMA), with digital asset products such as crypto bonds. However, according to multiple sources, these plans have now been postponed after the People's Bank of China (PBoC) and the Cyberspace Administration of China (CAC) advised against further implementation.

PBoC officials have reportedly warned of the risks involved in allowing private companies and brokerages to issue any currency. In addition, the PBoC sees corporate-run stablecoins as a potential threat to the digital yuan (e-CNY) project, a key initiative to strengthen the state’s digital currency management capabilities.

Stablecoins are digital assets pegged to fiat currencies such as the US dollar or the yuan, often used in cryptocurrency transactions because of their price stability. One expert said that the biggest concern of regulators is who actually has the power to issue currency, the central bank or private businesses in the market.

The opposition from Chinese officials reflects a global trend, with regulators concerned that stablecoins could challenge monetary sovereignty . The European Central Bank has warned that widespread adoption of dollar-backed stablecoins could hamper the eurozone’s monetary policy. Meanwhile, the Trump administration has championed stablecoins as a tool to boost the role of the dollar in global finance.

Hong Kong is seen as a testing ground for mainland policy, with its official stablecoin licensing program starting in August. Some Chinese officials believe that yuan-pegged stablecoins could help internationalize the currency. Zhu Guangyao, China's former vice minister of finance , has stressed the need to develop yuan-pegged stablecoins to counter the US strategy of maintaining the dollar's status.

However, regulators have become more cautious since a speech in August by former PBoC Governor Zhou Xiaochuan, who warned of the risk of stablecoins being misused for asset speculation, leading to fraud or financial instability. He also questioned the real need for tokenization, especially when the current payment system is already efficient enough, especially in the retail sector.

Source: https://baotintuc.vn/thi-truong-tien-te/cac-tap-doan-cong-nghe-trung-quoc-ngung-ke-hoach-phat-hanh-stablecoin-20251020075537207.htm