China’s JD Eyes Global Stablecoin Licenses to Slash Payment Costs

JD.com is planning to request Stablecoin licenses in several countries as part of an extensive effort to reduce the costs and time of cross-border payments, Richard Liu, founder and chairman, announced Tuesday.

Speaking during a press conference in Beijing, Liu said The Chinese e-commerce giant wants to launch Stablecoin services worldwide, starting with business-to-business payments and ultimately expand to the use of consumers.

“We strive to request our Stablecoin license in all the major sovereign currency countries in the world,” said Liu. “Our vision is that one day people around the world will be able to use JD’s local coins for global payments.”

Liu said that the company believes that Stablecoins can reduce the settlement times to less than 10 seconds and can lower the payment costs by a maximum of 90%.

The initiative is part of JD.com’s efforts to reverse years of stagnation. Once a dominant force in Chinese e-commerce, JD struggled with what Liu called ‘five lost years’, characterized by a lack of innovation and slow growth. The Stablecoin project joins a wider series of new companies, including steps to food delivery and tourism.

The company’s stablecoin -push of the company also comes as the worldwide momentum continues to grow behind the technology.

On Tuesday, the American Senate passed De Genius Act, a milestone bill that draws up a regulatory framework for publishing and acting stabilecoins. The bill has been adopted 68-30 and has attracted interest from large banks, retailers and technology companies. Companies such as Amazon, Walmart and Citigroup are already exploring Stablecoin applications.

Nevertheless, critics warn that technology could enable large companies to issue private currency and keep track of consumer data. Senator Elizabeth Warren has criticized the Genius Act as a back door for technical giants to launch supervision -based financial products.

“If the congress does not solve it, billionaires such as Elon Musk, Jeff Bezos and Mark Zuckerberg could launch Stablecoins who follow your purchases, exploit your data and squeeze out competitors,” Warren earlier told Decrypt.

“Then they will beg for a rescue operation if it inevitably inflates,” she added.

Others claim that Stablecoins offer poor value to consumers, because they usually do not provide interest, although companies themselves can earn it possible at customer deposits.

Founder of Coatue Management Philippe Laffont has called For basic contracts that would pass on spot interest rates to Stablecoin holders.

JD did not give up a launch time line or which jurisdictions it would prioritize for licenses. It described the initiative as an ‘overseas project’, which suggests that it would not be rolled out in China itself.

The company did not respond immediately Decrypts Request for comments on that point.

Edited by Sebastian Sinclair