China’s Plan to Fight Dollar Dominance Begins in Hong Kong on August 1
Main Idea
China is advancing its strategy to challenge the dominance of the US dollar by promoting an offshore RMB stablecoin in Hong Kong, with the Stablecoin Bill taking effect on August 1, 2025.
Key Points
1. Hong Kong's Legislative Council passed the Stablecoin Bill on May 21, 2025, with the law officially taking effect on August 1, 2025.
2. Over 40 firms have applied for licenses to issue CNH-backed stablecoins, with JD.com and Ant Group leading the efforts.
3. Experts view the RMB stablecoin as part of China's dual-track strategy: promoting the digital yuan domestically while expanding RMB use offshore.
4. Morgan Stanley noted that stablecoins could complement existing RMB settlement infrastructure, including the Cross-Border Interbank Payment System (CIPS).
5. Hong Kong's regulatory clarity is seen as a foundation for challenging the dominance of USDT and USDC in the stablecoin market.
Description
Hong Kong’s Stablecoin Bill takes effect August 1, with strict licensing requirements for RMB-backed stablecoin issuers. JD.com and Ant Group lead RMB stablecoin plans, aligning with Beijing’s push for offshore RMB internationalization. Experts see stablecoins aiding trade settlement, but trust issues and geopolitical risks could slow RMB adoption globally. An offshore renminbi (RMB) stablecoin is advancing rapidly as Hong Kong implements its new stablecoin ordinance. This comes as Chinese tech ...
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