Hong Kong Advances Stablecoin Plans with Central goverment Support
Hong Kong’s legislative Council has unveiled a special report on stablecoins, focusing on renminbi-backed digital assets. Teh report highlights the region’s intention to seek central government backing for offshore RMB-backed stablecoins.
Major Chinese enterprises, including PetroChina and the Bank of China, are keen on obtaining stablecoin licenses. This move aims to issue their own stablecoins tied to the Chinese currency. The report, released on October 13, covers key government policies and social issues, with a spotlight on fintech and digital assets.
The council notes a global financial shift driven by technology, particularly cryptocurrencies and stablecoins. Hong Kong is pushing for fintech innovation to maintain its status as an international financial hub. Issuing RMB-backed stablecoins could enhance Hong Kong’s role in digital assets and improve cross-border trade.
Sence August, Hong Kong has implemented the Stablecoin Ordinance. Lawmakers have proposed amendments to allow licensed issuers to sell stablecoins pegged to traditional fiat currencies. The focus is also on tokenized green bonds,with $43 billion planned for issuance.
Many chinese state-owned firms are interested in Hong Kong’s stablecoin issuer licenses. petrochina, for instance, seeks to use stablecoins for cross-border oil and gas settlements.However, authorities have warned against unapproved stablecoin projects.
Despite initial caution, China is exploring a yuan-backed stablecoin, marking a important shift in its digital asset strategy. Hong Kong’s efforts aim to balance innovation with regulatory oversight.
