Hong Kong advances Stablecoin Plans with Central Government Support
Hong Kong’s Legislative Council has unveiled a special report on stablecoins, particularly those backed by the Chinese renminbi. The report highlights the region’s intention too 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 council’s “special report,” released on October 13, covers key government policies and social issues, focusing on fintech and digital assets this month.
The report underscores how technology is reshaping the financial landscape, especially through cryptocurrencies and stablecoins. Hong Kong is pushing for fintech innovation to solidify its status as a global financial hub.issuing RMB-backed stablecoins could enhance cross-border trade and payment efficiency.
Since August, Hong Kong has been exploring stablecoin development.The Stablecoin ordinance, effective since August 1, has seen lawmakers propose amendments. These changes include allowing licensed issuers to sell stablecoins pegged to traditional currencies and focusing on tokenized green bonds.
Many Chinese state-owned firms are interested in Hong Kong’s stablecoin issuer licenses. PetroChina,as a notable exmaple,wants to use stablecoins for cross-border oil and gas settlements. However, authorities have warned against unapproved stablecoin projects.
Despite initial caution, China is now exploring a yuan-backed stablecoin, marking a significant shift in its digital asset strategy. Hong Kong’s efforts aim to balance innovation with regulatory oversight.
