During a recent media session on June 17 in Beijing, JD.com’s founder and chairman, Liu Qiangdong, announced the company’s plans to seek regulatory approval for stablecoin operations across all major sovereign currency countries. This initiative marks a significant step for a leading Chinese corporation in the digital currency landscape.
Liu outlined a vision where JD.com aims to revolutionize international commerce through its stablecoin infrastructure. The goal is to reduce global cross-border payment costs by 90%, shortening transaction times to just 10 seconds, a vast improvement over the current SWIFT system which often takes 2-4 days and incurs high costs.
JD.com’s proposed solution promises a substantial enhancement to these processes. The company’s approach will be phased, starting with business-to-business (B2B) transactions before expanding to consumer-to-consumer (C2C) applications.
Liu articulated a hopeful scenario where people would utilize JD’s local currency for global transactions, although he did not provide a specific timeline for when consumer payments might roll out. However, the initiative faces significant regulatory challenges, as it requires compliance with financial regulations in numerous jurisdictions.
Liu’s commitment to obtaining licenses in all major currency countries indicates that JD.com is prepared for a lengthy and complex regulatory approval process. This aligns with the company’s strategy for international expansion, which is methodical and well-planned.
The timing of this announcement is noteworthy as Liu aims to revitalize JD.com, following what he described as a “lost five years” without innovation. Since resuming active leadership in late 2023, he has focused on various initiatives including food delivery and hospitality services.
Liu envisions continuous innovation in the coming years, although he acknowledges the risk of potential failures in some projects. As JD.com pursues this stablecoin initiative, it is positioned to capitalize on its substantial transaction volume while also navigating a competitive landscape increasingly influenced by blockchain technology.
The success of this venture will rely on regulatory approval, technological execution, and merchant adoption.