Hong Kong Unlikely to Introduce Government-Backed Stablecoin, Says OKG Researcher
According to a senior researcher at OKG, it is unlikely that the Hong Kong government will introduce a government-backed stablecoin. This comes in response to a recent academic proposal advocating for a government-issued HKD stablecoin to compete with dollar-denominated coins. The researcher, Jason Jiang, believes that the government will instead focus on digital HKD and tokenized deposits, as mentioned in official statements.
Key Points:
– Hong Kong government unlikely to issue a government-backed HKD stablecoin due to the existence of digital HKD and uncertain stablecoin regulations.
– Hong Kong Monetary Authority will continue executing the digital Hong Kong dollar in three stages and work on developing a stablecoin regulatory framework.
– The academic proposal argued that a privately issued HKDG stablecoin would not be able to compete with U.S. dollar-denominated stablecoins, necessitating government reserves backing.
– The proposed stablecoin would enhance the Hong Kong dollar’s cross-border liquidity and improve transaction efficiency.
Hot Take
While there is a case to be made for a government-backed stablecoin in Hong Kong, it seems that the focus will remain on digital HKD and tokenized deposits. The uncertain regulatory landscape for stablecoins may also hinder the introduction of a government-backed HKD stablecoin. Nonetheless, the Hong Kong Monetary Authority’s efforts towards a digital Hong Kong dollar and stablecoin regulations show a commitment to innovation and improving the country’s digital currency ecosystem.
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