Yuan vs. U.S Dollar – The race to dominate the $2 trillion stablecoin market

• JD.com and Ant Group defend Stablecoins supported by Yuan to challenge the superiority of USD
• China looks at the coastal tokens of yuan in the middle of a sharp decline

As the United States recently move forward has passed Genius Act, Chinese technical giants are trying to balance the growing dominance of US digital currencies bound to the dollar.

Chinese move stablecoin

According to ReutersJD.com and Ant Group urged the Chinese central bank to illuminate the development of the yuan StablecoinsEspecially through Hong Kong.

These proposed stablecoins would be linked to offshore Juan aimed at increasing the global footprint of the Chinese currency while questioning the expanding digital influence of the US dollar.

Despite the Chinese ambition to question the dominance of stablecoins supported by the US will not catch up with any easy performance. USDC in Tether USDT and Circle are currently dominated by a market where more than 99% of Stablecoins with US dollar are bound to international settlements.

While the Stablecoin market is currently a modest $ 247 billion, Chartered Standard believes that by 2028 it could grow to $ 2 trillion by 2028.

The executors weigh …

Wang Yongli, co -chairman of the Information Services Group in Digital China and former Vice President of China, said, said, said, said, said, said, said, said, saying,

“It would be a strategic risk if the Juan cross -border payment was not as effective as the dollar stablecoins.”

Echo of similar sentiments, Xiao Feng, chairman of the cryptocurrency operator Hashkey, added,

“China can no longer avoid negotiations.”

What is behind this pressure?

Thus, if Chinese lobbying succeeded, it would mean a remarkable shift in policy from a ban on a cryptop ban in Beijing 2021 and could indicate a wider strategy to increase the international importance of yuan through digital financing.

However, the Chinese desire to elevate Yuan as a global reserve currency still faces significant obstacles, especially because of strict control of the Earth’s capital.

Although China ranks as the second largest economy in the world, Yuan’s presence in global payment systems has decreased. In fact, it fell to 2.89% in May – its weakest level in almost two years, according to SWIFT data.

On the other hand, the US dollar still maintains a commanding 48.46% share.

What’s more?

Therefore, because dollar stablecoins gain traction among Chinese exporters, many of which now prefer USDT for cross -border settlements, technicians like Ant Group and JD.com accelerate their own stablecoins to regain monetary land.

While JD.com plans to start Stablecoin at Hong Kong at the end of the year, the Ant Group actively performs licenses in Hong Kong, Singapore and Luxembourg to expand the payment infrastructure based on blockchain.

These movements are in line with the wider PUSH to face the growing dominance of the digital dollar.

It is worth noting that these updates coincided with optimism around the renewed US business interviews – China. These recently gave Bitcoin short pressure on more than $ 110,000, although the momentum has cooled in the middle of a lack of tangible progress – underlines the volatile background for geopolitics Stablecoin.