The HKGCC suggests launching digital stablecoins that are either pegged to the Chinese digital yuan or backed by a combination of fiat currencies such as the Chinese yuan, Hong Kong dollar, and US dollar.
“Stablecoins have the potential to become a popular payment option for professionals across various industries. Considering the global trends, it is reasonable to predict further integration between the digital payments ecosystem and the real economy. Our proposal aims to enhance Hong Kong’s overall business environment, attract and retain more companies, and address the challenges related to the shortage of highly skilled professionals,” the HKGCC stated in a press release.
The HKGCC is urging the government to explore the creation of a regulated “virtual asset scheme” for local participants in the crypto market, with a daily limit of approximately HK$20 billion (equivalent to $2.5 billion). They also recommend incorporating measures in the new budget to simplify the taxation process for non-resident digital service providers in Hong Kong.
Earlier, the Securities and Futures Commission of Hong Kong (SFC) had imposed a mandatory requirement for cryptocurrency exchanges to provide insurance coverage of at least 50% for user deposits.