Chinese technology giants Ant Group and JD.com have suspended their plans to issue stablecoins in Hong Kong after regulators in Beijing, including the People's Bank of China (PBoC) and the Cyberspace Administration of China (CAC), raised concerns over privately controlled digital currencies. The companies had announced over the summer that they would participate in Hong Kong's pilot stablecoin program, but were instructed to pause these initiatives due to sovereignty issues.
PBoC officials expressed apprehension about private entities having the ultimate right of coinage, questioning whether tech groups and brokerages should be allowed to issue any form of currency. This caution contrasts with earlier enthusiasm from some Chinese officials, who viewed renminbi-denominated stablecoins as a strategic response to U.S. dollar dominance. For instance, former Vice Minister of Finance Zhu Guangyao suggested in June that China utilize Hong Kong's pilot programs to promote the yuan's international use.
However, the momentum slowed as regulators highlighted risks. Former PBoC Governor Zhou Xiaochuan warned about stablecoins being excessively used for asset speculation, which could lead to fraud and financial instability. He also questioned the cost-cutting potential of stablecoins in retail payments, stating there is little room to cut costs in the current system.
Hong Kong's Monetary Authority began accepting applications from stablecoin issuers in August, positioning the territory as a testing ground. But the pushback from Chinese authorities underscores broader global regulatory tensions, with recent reports indicating that Beijing has also instructed local brokerages to pause real-world asset (RWA) tokenization activities in Hong Kong.
IPO
ADA
XRP
RTX
BTC
ETH
SOL