The post Yuan vs. U.S Dollar – The race to dominate the $2 trillion stablecoin market appeared on BitcoinEthereumNews.com.

JD.com and Ant Group are advocating for Yuan-backed stablecoins to challenge USD supremacy China is looking at offshore Yuan tokens amid a sharp decline in the currency’s global payment share As the United States moves forward with the recently passed GENIUS Act, China’s tech giants are seeking to counterbalance the growing dominance of U.S dollar-pegged digital currencies. China’s stablecoin push According to Reuters, JD.com and Ant Group have urged China’s central bank to greenlight the development of Yuan-based stablecoins, particularly through Hong Kong. These proposed stablecoins would be pegged to the offshore Yuan, aimed at increasing the global footprint of China’s currency while challenging the expanding digital influence of the U.S. dollar. Despite China’s ambition to challenge the dominance of U.S.-backed stablecoins, catching up will be no easy feat though. Tether’s USDT and Circle’s USDC currently dominate a market where more than 99% of stablecoins are tied to the U.S. dollar, according to the Bank for International Settlements. While the stablecoin market currently stands at a modest $247 billion, Standard Chartered believes it could surge to $2 trillion by 2028. Execs weigh in… Remarking on the same, Wang Yongli, Co-chairman of Digital China Information Service Group and former Vice Head of the Bank of China, said,  “It would be a strategic risk if cross-border yuan payment is not as efficient as dollar stablecoins.” Echoing similar sentiments, Xiao Feng, Chairman of crypto exchange operator HashKey, added,  “China can no longer avoid taking action.” What’s behind this push? Thus, if China’s lobbying push succeeds, it would mark a notable policy shift since Beijing’s 2021 crypto ban and could hint at a broader strategy to boost the Yuan’s international relevance through digital finance. However, China’s aspiration to elevate the Yuan as a global reserve currency continues to face significant hurdles, particularly due to the…

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Filed under: News - @ July 4, 2025 7:27 am