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Chinese regulators have blocked Ant Group and JD.com from launching stablecoins in Hong Kong, according to Financial Times reporting on Sunday, marking a significant reversal for companies that had publicly embraced the territory's pilot program just months ago.
The People's Bank of China and Cyberspace Administration of China instructed the technology giants to halt their plans, with central bank officials particularly concerned about allowing private companies to issue currency-like instruments, the FT reported. Sources told the publication that officials view private stablecoins as competing with China's digital yuan, the e-CNY.
The intervention underscores Beijing's determination to maintain state control over monetary systems even as other jurisdictions embrace privately issued digital currencies. Hong Kong launched its stablecoin issuer application process in August, attracting interest from mainland firms eager to experiment with blockchain-based financial products.
Former finance vice-minister Zhu Guangyao had argued in June that China needed renminbi stablecoins to counter American dollar dominance, viewing Washington's embrace of dollar-backed tokens as a strategic move to extend US currency influence. However, former central bank governor Zhou Xiaochuan subsequently urged caution at a July forum, warning about speculation risks and questioning whether stablecoins offered meaningful efficiency improvements over existing payment systems.
The regulatory clampdown comes as global authorities grapple with stablecoin governance questions. The Trump administration has promoted dollar stablecoins as mainstream financial tools, while European regulators worry about losing monetary policy control if dollar-pegged tokens gain widespread adoption.
Neither the companies nor regulators provided official comment on the development.
