Hong Kong’s Legislative Council recently released a report highlighting the growing interest in RMB-backed stablecoins. The report, part of a broader initiative to advance digital finance and financial innovation, signals Hong Kong’s ambitions to become a leading global hub for blockchain and digital asset technology. 🇨🇭
The council acknowledges the potential of these stablecoins for cross-border payment transactions, with recent interest from major Chinese state-owned firms like China National Petroleum Corporation (PetroChina) for applications in energy trade settlements. 📈
Despite this growing enthusiasm, regulators remain cautious. While the Stablecoin Ordinance took effect in August, official licensing is yet to begin, and there’s a warning against unlicensed projects. ⚠️
Hong Kong’s approach extends beyond stablecoins, with plans for tokenizing green bonds under its fintech strategy, aiming to achieve significant investment goals.