The global stablecoin landscape is witnessing a strategic shift as major Chinese enterprises advocate for the development of a renminbi (RMB)-backed digital currency to rival dominant dollar-pegged tokens like USDT. With digital payments evolving rapidly, companies such as JD.com and Ant Group are actively engaging with the People's Bank of China (PBOC) to explore launching an RMB-supported stablecoin—particularly targeting Hong Kong as a regulatory testing ground.
This initiative reflects a broader ambition: to strengthen the international role of the RMB in cross-border transactions and reduce reliance on U.S. dollar-dominated financial infrastructure. As more Chinese exporters adopt USDT for trade settlements, domestic tech leaders see an urgent need for a credible, blockchain-based RMB alternative that aligns with national monetary strategy.
The Rise of Dollar-Dominated Stablecoins
Stablecoins pegged to the U.S. dollar currently dominate the cryptocurrency ecosystem. According to data from the Bank for International Settlements (BIS), over 99% of all circulating stablecoins are dollar-backed, with Tether (USDT) leading the market by a significant margin. This dominance extends into international trade, where businesses increasingly use USDT for fast, low-cost remittances and settlements—especially in regions with limited access to traditional banking channels.
For Chinese exporters, USDT has become a de facto tool for managing foreign exchange risks and bypassing capital controls. Crypto HK, a Hong Kong-based over-the-counter broker, reports that USDT transaction volumes among mainland clients have surged fivefold since 2021. While this trend boosts efficiency, it raises concerns about the erosion of the RMB’s influence in global commerce.
Wang Yongli, former deputy governor of China Construction Bank, warns that the widespread adoption of dollar-denominated digital assets poses a growing threat to RMB internationalization efforts. “If we don’t act, the digital yuan could be sidelined in its own backyard,” he stated in a recent commentary.
Why a Renminbi Stablecoin Matters
Despite years of promoting the RMB as a global currency, China still faces structural challenges. Capital account restrictions, limited offshore convertibility, and the 2021 domestic ban on cryptocurrency trading have constrained the digital yuan’s (e-CNY) overseas expansion. According to SWIFT, the RMB accounted for just 2.89% of global payments in April 2025, compared to over 48% for the U.S. dollar.
A blockchain-based RMB stablecoin—issued by trusted private-sector players under central bank supervision—could bridge this gap. Unlike the e-CNY, which operates on a centralized, closed-loop system controlled by the PBOC, a privately issued but regulated stablecoin could offer greater interoperability across decentralized finance (DeFi) platforms and international payment networks.
JD.com and Ant Group argue that such a model would enable seamless cross-border trade financing, supply chain settlements, and remittances—particularly beneficial for small and medium-sized enterprises (SMEs) engaged in global commerce.
Hong Kong: A Strategic Gateway
Hong Kong is emerging as a potential launchpad for RMB stablecoins. With its robust legal framework, deep financial markets, and proximity to mainland China, the Special Administrative Region offers a unique environment for piloting innovative fintech products without violating mainland restrictions.
Under new local crypto regulations effective January 1, 2025, licensed firms may issue asset-backed stablecoins—initially focused on HKD-pegged tokens. However, industry insiders caution that a Hong Kong dollar stablecoin alone won’t advance RMB internationalization, given that the HKD is itself pegged to the USD.
Hence, JD and Ant are pushing for regulatory approval to issue RMB-pegged stablecoins in Hong Kong, subject to strict anti-money laundering (AML) and know-your-customer (KYC) compliance. These tokens would be fully reserved, backed by liquid RMB assets held in regulated custodians.
Regulatory Hurdles and Strategic Balancing
China’s cautious stance toward private cryptocurrencies remains a key obstacle. The 2021 ban on crypto trading and mining underscored Beijing’s priority: maintaining monetary sovereignty and financial stability. Any move toward approving private-sector stablecoins must align with these principles.
However, global trends are shifting. Former U.S. President Donald Trump has publicly endorsed stablecoin development and called for clear regulatory frameworks to support innovation. Meanwhile, jurisdictions like Singapore, Switzerland, and the UAE are advancing pro-innovation policies that attract blockchain investment.
In response, Chinese regulators may view a tightly supervised RMB stablecoin—not as a threat, but as a strategic tool to enhance financial autonomy. By allowing select fintech giants to issue regulated tokens under central bank oversight, China could maintain control while expanding its digital currency footprint abroad.
FAQ: Understanding the Future of RMB Stablecoins
Q: What is a stablecoin?
A: A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset, such as a fiat currency (e.g., USD or RMB), commodities, or other crypto assets.
Q: How is a private RMB stablecoin different from China’s digital yuan (e-CNY)?
A: The e-CNY is a central bank digital currency (CBDC) issued and controlled by the PBOC. A private RMB stablecoin would be issued by companies like JD or Ant but fully backed by RMB reserves and regulated to ensure compliance.
Q: Could an RMB stablecoin replace USDT?
A: Not immediately. USDT’s network effect is immense. However, an officially sanctioned RMB stablecoin could gain traction in Asia, Africa, and Latin America—regions with strong trade ties to China.
Q: Is this legal under China’s current crypto ban?
A: The mainland ban applies to decentralized cryptocurrencies and speculative trading. A regulated, asset-backed stablecoin issued in Hong Kong under strict oversight may fall outside this restriction.
Q: What are the risks involved?
A: Risks include regulatory backlash, reserve mismanagement, and potential use in illicit flows. Success depends on transparency, auditability, and coordination with monetary authorities.
Q: When might we see an RMB stablecoin launch?
A: If regulatory talks progress smoothly, pilot programs could begin in late 2025 or early 2026, likely starting in Hong Kong before expanding to other offshore financial hubs.
Conclusion
The push by JD.com and Ant Group for an RMB-backed stablecoin marks a pivotal moment in the evolution of digital finance. While challenges remain—especially around regulation and trust—the potential benefits for RMB internationalization, cross-border trade efficiency, and financial innovation are substantial.
As dollar-pegged stablecoins continue to dominate global flows, China’s move could signal a new phase in the digital currency race—one where geopolitical considerations meet technological advancement. Whether this effort succeeds will depend not only on technical execution but also on strategic alignment between private enterprise and public policy.
By fostering a compliant, transparent, and interoperable RMB stablecoin ecosystem, China may finally unlock the next chapter in its long-term vision for a multipolar digital monetary system.