Crypto & blockchain advocates are giving suggestions to the Hong Kong government for government-backed stablecoin to compete against existing stablecoins in the crypto sector.
Hong Kong is a special administrative region of China, a country in which crypto is fully banned. In the jurisdiction of Hong Kong, crypto trading & investment is legal under a highly clear regulatory framework. Around a couple of years ago, Hong Kong banned retail crypto Investment but last month brought a new framework to allow retail investors to participate in the Crypto sector. Under the current rule & regulations, stablecoins use in crypto trading is strictly prohibited for citizens.
On 3 July 2023, Chinese crypto blogger Colin Wu shared crypto news on behalf of a local Chinese media report and noted that crypto & blockchain proponents are giving suggestions to the Hong Kong government to launch the Hong Kong dollar.
The report noted that 4 crypto proponents sent a proposal for the Hong Kong government to establish a new blockchain technology-based stablecoin, more similar to USDC (Circle) & USDT (Tether) but pegged by the exact fiat value of the Hong Kong dollar.
These four crypto & blockchain proponents are Wang Yang, vice president for institutional advancement at Hong Kong University of Science and Technology; Cai Wensheng, founder of smartphone software firm Meitu; Lei Zhibin, an honorary chair of the Hong Kong Blockchain Association; and doctoral student Wen Yizhou co-authored the paper.
Crypto blogger confirmed that the Hong Kong government so far has not responded to this proposal. On behalf of this report, many reports claimed that the Hong Kong government may choose the stablecoin concept as a part of the Hong Kong Central Bank Digital Currency (CBDC) adoption plan, which will bring a better path for Hong Kong to establish itself as a leader in the digital sector adoption.
Read also: Singapore to ban retail crypto lending services
