Hong Kong’s crypto assets and experts in blockchain asked the government to create stablecoins pegged to the Hong Kong dollar. Chinese cryptocurrency reporter Colin Wu released a story.
The co-authors criticized the government’s conservative viewpoint, saying that it went against its commitment to supporting cryptocurrencies and blockchain technologies by pushing private institutions to create stablecoins pegged to the Hong Kong dollar.
The story further suggested that HKDG would assist Hong Kong in making a significant de-dollarization move and challenge the power of the U.S. Dollar in the cryptocurrency ecosystem. According to the experts, it might also simplify the digitization of traditional assets, encourage financial innovation and competition, and boost transparency for government investment initiatives.
In addition to advancing the development of the digital Hong Kong dollar, the issuance of a stablecoin tied to the Hong Kong dollar also contributes to the consolidation of Hong Kong’s leadership in the blockchain industry by increasing transaction efficiency, lowering transaction costs, enhancing current payment systems, and enhancing Hong Kong’s fintech abilities. The Hong Kong Dollar stablecoin can also improve the effectiveness and inclusivity of Hong Kong’s financial system because of its stability, freedom of exchange, high level of safety, transparency, and cross-border mobility.
More generally, significant governments compete to host the following-generation financial infrastructure for digital assets in bitcoin hubs. An energetic ecosystem for virtual assets, including exchanges, exchange-traded funds, tokenized assets, and stablecoins, is what Hong Kong’s Web 3.0 policy pivot, announced in October 2022, seeks to create.
Hong Kong has made a statement indicating its desire to reclaim its former position as a global center for the cryptocurrency business by establishing a web3 task force to assist in “building a vibrant environment” in the area.