It has been reported that the Hong Kong government has proposed the issuance of its own stablecoin, HKDG, backed by the jurisdiction’s currency reserves, in order to compete with existing industry giants such as USDT and USDC (which would not have been possible without China’s consent).
Authorities have emphasized the importance of such asset classes as a bridge between traditional finance and the digital economy. Among the advantages highlighted for such a stablecoin are:
• Expanded financial accessibility
Increased transaction efficiency
• Reduced transfer costs
• Improved local payment systems
• Strengthening of the jurisdiction’s fintech industry.
China is one of the world’s largest economies! If it decides to loosen or completely lift the ban on crypto assets, it would help stimulate global development in this sector and make it more acceptable to the general population.
Undoubtedly, for investors and entrepreneurs in other countries, even such a step from Hong Kong is already seen as a signal to increase trust in cryptocurrencies and recognition of the potential value of blockchain.