Chinese tech giants pause stablecoin plans after Beijing steps in

Chinese tech firms have halted stablecoin plans in Hong Kong following Beijing's concerns over privately controlled currencies. Companies like Ant Group and JD.com initially showed interest in the pilot stablecoin program. However, they received instructions from Chinese regulators, including the People’s Bank of China (PBoC), to pause their efforts.

Regulators fear that private stablecoins could undermine the PBoC's digital currency project, the e-CNY. Stablecoins, digital tokens linked to fiat currencies, play a vital role in crypto trading. Officials stress the need for careful evaluation of stablecoins to avoid systemic risks, emphasizing that “the real regulatory concern is, who has the ultimate right of coinage.”