Hong Kong cryptocurrency ecosystem actors are urging the government to issue a stablecoin that can compete with Tether (USDT) and USD Coin (USDC).
According to a report published on July 4 by Chinese crypto reporter Colin Wu, the Hong Kong government USDT And USDC with industry giants such as rivalry one who can stablecoin to export in policy proposal found. Proposal, Vice-Chancellor of Hong Kong University of Science and Technology Wang YangThe famous angel investor Cai WenshengFounder of Web3 technology company BlockCity Lei Zhibin and Hong Kong University of Science and Technology PhD student Wen Yizhou Written by
In the proposal, Hong Kong’s recently cryptocurrency ecosystem in the success of with a government-issued stablecoin strengthening stressed the need. According to the recommendations, this project is the financial system of Hong Kong. efficiency And scope on positive will have an effect.
to Hong Kong Dollar (HKD) stablecoin that is specified to be tied will reduce transaction coststransactions faster will ensure the realization of to prevent dollarization global use of HKD will help will increase and Hong Kong Fintech industry to the development was made to contribute.
In addition, a government-issued stablecoin is in the Hong Kong financial system. will support transparency, innovation, security and stability. statements were also included in the recommendation.
In the proposal, the Hong Kong government private companies stablecoin issuance encouraging current policies too conservative has been criticized for being Suggesting actors, private companies A stablecoin pegged to HKD issued by can’t hold on suggested. In this context “Xfers” issued by a private company called to Singapore Dollar (SGD) the linked stablecoin only $6.6 million It was given as an example that it could reach its market value.
In line with the available arguments, the overall average 120 billion dollar reserves USDT And USDC’s 430 billion with Hong Kong, which has dollar foreign exchange reserves cannot be compared Proponents implying that a stablecoin pegged to HKD will be available to the government. Money Politics also about new possibilities claimed to present.
On the other hand, in the proposal, stablecoins possible risks was also mentioned. In this context, although the risks in a government-backed stablecoin low Although it is underlined that there will be cyber attack risks and what stablecoin can cause economic instability Risk was also among the topics discussed.