Alibaba weighs deposit token as China clamps down on stablecoins: Report

US President Donald Trump has expressed support for a Senate proposal that would allow the imposition of tariffs up to 500% on imports from countries that continue to purchase Russian energy. The proposed tariffs would apply to oil, natural gas, petroleum products, and uranium, targeting major buyers like India and China. This measure aims to reduce Russia's export revenues, although it remains a proposal and has not yet become law. The announcement has caused significant volatility in the cryptocurrency market.

Alibaba and JPMorgan are launching tokenized deposit rails for global B2B payments, significantly reducing transaction settlement times from days to nearly instant. These deposit tokens, which maintain funds within the banking perimeter while utilizing blockchain technology for speed, will enhance wallet infrastructure to manage various digital currencies. The Best Wallet combines a non-custodial, multi-chain wallet with a DEX aggregator and other features, allowing token holders to benefit from lower fees and increased staking yields.

Dutch central bank governor Olaf Sleijpen has issued a warning regarding the potential risks associated with stablecoins. He cautioned that if stablecoins were to fail, the issuers might be compelled to liquidate their reserves, which could lead to increased stress across financial markets. This statement highlights the vulnerabilities within the cryptocurrency sector and raises concerns about the broader implications for economic stability.

Chinese tech giant Alibaba is collaborating with JPMorgan to develop a stablecoin-like payment system utilizing artificial intelligence. This initiative aims to enhance cross-border e-commerce transactions by simplifying payment processes and reducing reliance on intermediaries. Kuo Zhang, president of Alibaba.com, emphasized the goal of using tokenized fiat for faster and more uniform payments, marking a significant step in the evolution of digital currency transactions.