Chinese Tech Giants Urge Central Bank Approval for Offshore Yuan Stablecoins

Chinese tech giants Alibaba, JD.com, and Ant Group are lobbying the People's Bank of China to approve yuan-based stablecoins, specifically proposing offshore yuan tokens issued in Hong Kong to counter the dominance of U.S. dollar-backed stablecoins in the global market. Despite China’s 2021 crypto ban and capital controls limiting domestic issuance, Hong Kong’s new stablecoin regulatory framework, effective August 1, 2025, offers a more permissive environment to launch these digital yuan products internationally. The yuan’s share in global payments has dropped below 3%, while U.S. dollar stablecoins hold over 99% of the $247 billion stablecoin market, prompting Chinese firms to act quickly to prevent further loss of ground. Economists note that while HKD stablecoins are pegged to the U.S. dollar due to the Hong Kong dollar’s peg, an offshore yuan stablecoin could strengthen China’s currency internationalization efforts amid growing global digital trade. Additionally, mainland fintech firms are partnering with Hong Kong companies to develop infrastructure and wallets to support stablecoin ecosystems, signaling strong interest in leveraging Hong Kong as a global fintech hub. These moves reflect Beijing’s strategic pivot to embrace digital currency innovation offshore to enhance the yuan’s global role and challenge U.S. dollar digital dominance.