JD.com, a top e-commerce platform in China, is considering getting stablecoin licences from international markets.
By Godfrey Benjamin
Editor Yana Khlebnikova
Updated
3 mins read
Richard Liu, the founder of China-based e-commerce platform JD.com, has announced the company’s plan to apply for stablecoin licences worldwide. He stated that the focus is on major sovereign currency countries and international markets.
The leading Chinese e-commerce and tech giant is keen on improving global business-to-business transfers in its jurisdiction. Hence, the plan is to apply for these stablecoin licences. Liu is optimistic that such legal approvals will enable the company to enjoy a 90% reduction in cross-border payment costs and a transaction process that runs in just 10 seconds.
If this were to happen, it would mark a significant pivot from the current expenses and delays experienced with the SWIFT system. The e-commerce pioneer is looking forward to a time when a JD coin would facilitate seamless international transactions globally.
The recent development further underscores sentiments that blockchain and stablecoins are finding a significant position in Traditional Finance (TradFi). China’s central bank governor, Pan Gongsheng, acknowledged this reality, citing that both financial advancements have transformed the traditional payment system.
According to his statement, they have brought significant improvement and efficiency to cross-border transactions.
It is worth noting that this represents a notable shift in China’s stance on stablecoins. Four years ago, Fan Yifei, the deputy governor of the People’s Bank of China (PBoC), claimed that stablecoins may bring risks and challenges to the international monetary system.
“These (digital) currencies have themselves become speculation tools,” Fan said. He noted that they have raised potential threats to “financial security and social stability.”
As a result, he pushed for implementing a Central Bank Digital Currency (CBDC) instead, noting that they were more centralized and controlled by the bank. In the long run, JD developed the first-ever stablecoin pegged 1:1 to the Hong Kong Dollar (HKD) on a public blockchain.
This recent JD plan to get a stablecoin license aligns with the growing push for such token payments worldwide.
Notably, the JD plans come as the US is in the middle of implementing robust regulations for stablecoins. US lawmakers have been pushing for the passing of the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS ACT) into law. The bill has had to go through several channels to receive support.
On June 17, the US Senate finally passed the GENIUS Act, attracting applause from Ripple Labs, Coinbase, and Gemini. In an X post, Ripple CEO Brad Garlinghouse called the passage of the GENIUS Act “a truly historic moment.” He further highlighted it as the first cryptocurrency bill to pass in the Senate since the Dodd-Frank Act.
Garlinghouse and other top crypto players, such as Coinbase CLO Paul Grewal and Gemini’s Tyler Winklevoss, are positive that this regulatory framework will enhance innovation and foster growth in the cryptocurrency sector.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
