JD.com Ant Group Propose RMB Backed Stablecoin to Challenge US Dollar Dominance

JD.com and Ant Group have taken a significant step towards promoting the internationalization of the RMB by engaging with the People's Bank of China to propose the approval of an RMB-backed stablecoin. This initiative, discussed on July 4, 2025, aims to enhance the RMB's global position through offshore transactions, particularly in regions like Hong Kong. The proposal is driven by the need to address the current limitations posed by the dominance of the US dollar in global transactions.

Both companies have emphasized the urgent need for offshore RMB stablecoins to facilitate cross-border payments and promote the RMB's internationalization. This move is seen as a countermeasure against the dominance of dollar-backed stablecoins in the market. The proposal plans to introduce RMB-backed stablecoins in Hong Kong, with potential expansion if successful.

The crypto community is closely monitoring the regulatory and market responses to this proposal. Experts suggest that a successful RMB-backed stablecoin could reshape global payment infrastructure by integrating traditional currencies with blockchain technologies. However, regulatory hurdles remain a significant challenge.

Historically, the RMB has faced difficulties in surpassing a 3% share in global transactions, despite domestic trials of digital yuan. The introduction of an RMB-backed stablecoin could address these challenges by providing a more efficient and reliable means of cross-border payments.

According to Wang Yongli, Former Deputy Head of the Bank of China, the inefficiency of yuan cross-border payments compared to dollar-pegged stablecoins, which operate 24/7 on the blockchain, poses strategic risks for China. This underscores the importance of the proposed RMB-backed stablecoin in enhancing the RMB's global competitiveness.

JD.com and Ant Group have also expressed plans to issue stablecoins backed by the Hong Kong dollar once new regulations take effect on August 1. However, they emphasize that a yuan-pegged stablecoin is crucial for achieving their broader goal of promoting the yuan's international use. The upcoming Stablecoin Ordinance in Hong Kong provides a regulatory framework that allows companies to apply for licenses, paving the way for the issuance of stablecoins.

Despite China's 2021 ban on cryptocurrencies, policymakers have shown interest in stablecoins for cross-border payments. The approval of a yuan-pegged stablecoin could mark a significant shift in China's approach to digital assets, potentially enhancing the yuan's role in global finance. This move aligns with China's broader strategy to internationalize its currency and reduce dependence on the US dollar in global trade and financial transactions.