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Wang Yang, vice president for institutional development at Hong Kong University of Science and Technology; Cai Wensheng, founder of smartphone software company Meitu; Lei Zhibin, chairman emeritus of the Hong Kong Blockchain Association; and Wen Yizhou, a student.. Analysts write that the creation of Hong Kong’s own steblecoin will strengthen its leadership position in the digital economy.<br
“The issuance of a Hong Kong dollar-linked steiblocoin will not only consolidate Hong Kong’s leadership in the blockchain sector, but will also contribute to the creation of a digital Hong Kong dollar. Stablecoin will increase transaction efficiency and reduce costs, improve existing payment systems. In addition, Stablecoin can improve the efficiency and inclusiveness of Hong Kong’s financial system, its stability, high level of innovation and cross-border liquidity. And that will attract new financial innovation,” the paper notes.
According to analysts, the current position of the Hong Kong authorities, which encourages private financial institutions to create a Hong Kong dollar-linked stablocoin, is “overly conservative.”
“The risks posed by creating a state-owned steblecoin pegged to HKD are significantly lower than those posed by similar tokens created by private institutions,” the study’s authors said.
It was recently reported that Hong Kong’s largest bank, HSBC, has agreed to allow its customers to buy and sell units of exchange-traded funds for bitcoin and ether.