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Advocates call for Hong Kong govt stablecoin to compete with Tether and USD Coin

Press Releases Crypto News Cointelegraph Advocates call for Hong Kong govt stablecoin to compete with Tether and USD Coin

Crypto and blockchain advocates have authored a report calling for the Hong Kong government to issue a stablecoin pegged to the region’s dollar, which could challenge the dominance of Tether and USD Coin.

According to an English translation of a July 3 report provided by Chinese crypto reporter Colin Wu, four individuals tied to financial innovation proposed the government issue an HKDG (Hong Kong Dollar Government) stablecoin to support its leadership efforts in the digital economy. 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.

“Issuing a stablecoin pegged to the Hong Kong dollar not only helps to solidify Hong Kong’s leadership in the blockchain sector but also propels the progress of the digital Hong Kong dollar, enhancing transaction efficiency, reducing transaction costs, improving current payment systems, and further strengthening Hong Kong’s fintech capabilities,” said the report. “Moreover, the Hong Kong Dollar stablecoin can enhance the efficiency and inclusiveness of Hong Kong’s financial system; its stability, freedom of exchange, high security, openness, and cross-border liquidity can support a wider range of financial innovations.”

A Proposal for Hong Kong to Issue a Hong Kong Dollar Stablecoin to Compete with USDT/USDC

By Vice President of Hong Kong University of Science and Technology and Chairman of Meitu

Read more: https://t.co/pCTxkqMLM7

— Wu Blockchain (@WuBlockchain) July 4, 2023

Yang, Wensheng, Zhibin, and Yizhou argued that the government’s plan of encouraging private institutions to issue stablecoins pegged to the Hong Kong dollar was “too conservative” in contrast to its intention of promoting crypto and blockchain. The report claimed that Hong Kong’s foreign exchange reserves as of March 2023 totaled rough

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Author: Turner Wright

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