- Beijing halts Ant Group and JD.com’s stablecoin ambitions in Hong Kong.
- Regulators fear private stablecoins could undermine China’s digital yuan project.
- Hong Kong’s crypto growth faces slowdown amid mainland regulatory intervention.
Chinese regulators have reportedly halted the stablecoin ambitions of major tech firms Ant Group and JD.com, according to the Financial Times. Both companies had been preparing to issue yuan-pegged stablecoins in Hong Kong, but are now pausing their efforts after direct intervention from the People’s Bank of China (PBoC) and the Cyberspace Administration of China (CAC).
Ant Group, an affiliate of Alibaba, and JD.com were among several firms that had urged the PBoC to approve their plans before Hong Kong’s new stablecoin licensing regime came into effect. Yet, those discussions have been overtaken by regulatory caution, as officials instructed the companies not to proceed further with any form of private-issued digital currency.
Concerns Over Currency Control and Financial Stability
According to the Financial Times, five sources revealed that PBoC officials are increasingly wary of private firms issuing any currency, viewing such activities as a possible challenge to the central bank’s authority. One source added that privately run stablecoins could undermine the development of China’s digital yuan, or e-CNY, which continues to face slow adoption across the mainland.
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During a closed-door forum in late August, PBoC Governor Zhou Xiaochuan expressed unease about the potential instability caused by stablecoins. He noted that central banks are mainly concerned about excessive issuance without full reserves and the leverage effects arising from post-issuance operations.
Zhou emphasized that although both the US GENIUS Act and Hong Kong’s Stablecoin Ordinance address these issues, their controls remain insufficient.
Besides, China’s regulators have also tightened oversight in other digital asset areas. They recently asked several top brokerages to pause their tokenization projects and discouraged the publication of research papers endorsing stablecoins.
These moves suggest a broader effort by Beijing to rein in private digital-currency initiatives while maintaining dominance through state-controlled platforms.
Hong Kong’s Crypto Vision Faces New Hurdles
Hong Kong’s ambition to position itself as a crypto-friendly financial hub may face setbacks as Beijing’s influence extends into the city’s digital asset ecosystem.
The Hong Kong Monetary Authority earlier confirmed that 77 firms had expressed interest in applying for a stablecoin license, including Ant Group and JD.com. However, the mainland’s latest intervention could slow that momentum.
Moreover, Hong Kong has sought to distinguish itself as a regulatory sandbox for crypto innovation. Yet, Beijing’s caution highlights that decisions regarding digital currency issuance—even in semi-autonomous regions—remain closely tied to mainland policy priorities.
Broader Implications
Beijing’s decision underscores a clear message: monetary authority lies strictly with the central bank. Allowing private stablecoins could complicate monetary control and threaten the credibility of the e-CNY project.
Consequently, Ant Group and JD.com’s retreat signals that any future stablecoin development involving Chinese entities will likely proceed only under the watchful eye of the PBoC.
This latest episode reflects China’s ongoing struggle to balance technological innovation with strict financial governance, ensuring that digital currency evolution aligns with state interests rather than private ambitions.
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