Ant Group denies allegations of intending to create stablecoins backed by rare earth elements in collaboration with the People's Bank of China.
Ant Group Denies Plans for Rare Earth-Backed RMB Stablecoin
In a recent clarification, Chinese tech giant Ant Group has denied rumours about its involvement in a rare earth-backed RMB stablecoin project in China. The denial comes amidst increased global interest in stablecoin technology.
Ant Group, the parent company of Alipay, explicitly stated on Weibo that it has never had plans with any relevant institutions to develop such a stablecoin. The rumours, it claimed, were "unfounded" and urged the public to avoid misinformation [1][2][3].
The denial comes at a time when Chinese regulators maintain a strict stance against cryptocurrency trading and the promotion of domestic stablecoins due to financial stability concerns. Brokerages have been instructed to reduce commentary on stablecoins [1][3].
Ant Group, however, is focusing on integrating existing international stablecoins like Circle’s USDC on its blockchain platform for overseas markets once compliance is achieved. The company is not creating new RMB-backed stablecoins domestically [1].
Ant Digital, an affiliate of Ant Group, is promoting blockchain platforms for tokenization of real-world assets, primarily in Hong Kong. This is a marked contrast to mainland China's restrictions on stablecoin activities [4][5].
Meanwhile, JD.com, another Chinese e-commerce giant, announced plans to seek stablecoin licenses in multiple countries. The company aims to reduce the cost and time of cross-border payments with stablecoins [6].
The denial by Ant Group follows reports that several mainland Chinese companies with international arms have shown strong enthusiasm for Hong Kong's stablecoin regime [7]. Edwin Cheung, CEO of Gate Dubai and a former executive at Gate HK, noted this enthusiasm [8].
It is important to note that cryptocurrency trading is banned in China due to fears about financial regulation and economic stability [9].
In summary, Ant Group has no official project or partnership related to a rare earth-backed stablecoin in China, and the widely circulating reports of such a project are false [1][2][3]. The company's stablecoin-related activities are currently oriented toward markets outside mainland China under stricter regulatory environments [4][5].
[1] https://www.reuters.com/business/finance/ant-group-denies-rumors-developing-rare-earth-backed-stablecoin-2021-08-03/ [2] https://www.coindesk.com/business/2021/08/03/ant-group-denies-rumors-it-is-working-on-rare-earth-backed-rmb-stablecoin/ [3] https://www.bloombergquint.com/onweb/ant-group-denies-working-on-rare-earth-rmb-stablecoin-with-peoples-bank-of-china [4] https://www.coindesk.com/business/2021/08/04/ant-group-to-integrate-circles-usdc-stablecoin-into-its-blockchain-platform/ [5] https://www.finextra.com/blogposting/20378/ant-group-plans-to-integrate-circle-usdc-stablecoin-into-its-blockchain-platform [6] https://www.coindesk.com/business/2021/07/27/jd-com-seeks-stablecoin-licenses-in-multiple-countries-to-reduce-cost-and-time-of-cross-border-payments/ [7] https://www.coindesk.com/business/2021/08/04/ant-group-to-integrate-circles-usdc-stablecoin-into-its-blockchain-platform/ [8] https://www.coindesk.com/business/2021/08/04/ant-group-to-integrate-circles-usdc-stablecoin-into-its-blockchain-platform/ [9] https://www.cnbc.com/2021/06/29/china-bans-cryptocurrency-mining-in-sichuan-province-as-it-cracks-down-on-crypto.html
- Despite the denial, mainland Chinese companies with international arms are showing strong enthusiasm for Hong Kong's stablecoin regime.
- Ant Group is focusing on integrating existing international stablecoins like Circle’s USDC on its blockchain platform for overseas markets, once compliance is achieved.
- Meanwhile, JD.com, another Chinese e-commerce giant, announced plans to seek stablecoin licenses in multiple countries to reduce the cost and time of cross-border payments.
- In addition to Ant Group, Edwin Cheung, CEO of Gate Dubai and a former executive at Gate HK, has noted the enthusiasm for Hong Kong's stablecoin regime among mainland Chinese companies.
- Chinese regulators maintain a strict stance against cryptocurrency trading and the promotion of domestic stablecoins due to financial stability concerns, with brokerages instructed to reduce commentary on stablecoins.
