Hong Kong Chamber of Commerce calls for stablecoin issuance

Hong Kong Chamber of Commerce advocates for the introduction of stablecoins to aid in economic recovery, particularly one linked to China’s yuan. The chamber recognizes the close relationship between Hong Kong and China and believes that stablecoins could leverage China’s recent economic growth. In a Budget Submission to the Office of the Financial Secretary, the HKGCC urged the implementation of stablecoins backed by major global currencies, including the U.S. dollar. Additionally, the chamber proposed the establishment of a Virtual Asset Connect Scheme, which could have a daily limit of HK$20 billion ($2.5 billion). To further stimulate economic growth, the HKGCC suggested a 5% digital services tax on providers based outside of Hong Kong and offered short-term measures such as one-off rebates on salary taxes and the removal of certain duties. The chamber also emphasized the importance of the financial markets, including the issuance of green bonds, the internationalization of the Chinese yuan, and the development of an intellectual property trading center. Hong Kong has been actively promoting Web3 initiatives, attracting international service providers with financial incentives and favorable regulations. The Securities and Futures Commission (SFC) is also working on robust regulations for stablecoins, asset tokenization, and spot ETFs linked to digital assets, recognizing both the benefits and risks of these technologies.