Beijing Halts Chinese Tech Giants’ Stablecoin Initiatives in Hong Kong

Major Chinese tech firms ANT Group and JD.com have suspended their Hong Kong stablecoin initiatives following regulatory intervention from Beijing. The People’s Bank of China (PBoC) and the Cyberspace Administration of China (CAC) directed the companies to pause their efforts, citing concerns over private entities issuing digital currencies. The Core issue revolves around whether currency issuance should remain the exclusive domain of central banks.

Earlier this year, both ANT Group and JD.com explored participation in Hong Kong’s stablecoin pilot program, including potential launches of tokenized financial products like digital bonds. Hong Kong recently began accepting applications for stablecoin issuers, with mainland officials initially viewing the initiative as a means to promote renminbi-pegged stablecoins and enhance the yuan’s global footprint.

The Hong Kong Monetary Authority (HKMA) had planned to issue a limited number of stablecoin licenses during the program’s initial phase, despite strong interest from 77 institutions. In May, Hong Kong’s Legislative Council passed the Stablecoin Bill, setting the stage for major players to apply for HKMA licensing.