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Digital Hong Kong Dollar Stablecoin Proposed by Lawmaker

A member of the Hong Kong Legislative Council, Wu Jiezhuang, has suggested that the nation's digital Hong Kong dollar be issued as a stablecoin.

Hong Kong City
Hong Kong City

Jiezhuang believes this could attract web3 startups to the country and offer a range of benefits. He co-founded G-Rocket, a startup accelerator aimed at helping 1,000 web3 businesses set up in Hong Kong in the coming years.

Private Stablecoins Lack Market Confidence

In an interview, Jiezhuang discussed the advantages of turning the digital Hong Kong dollar into a stablecoin. He pointed out that current stablecoins, mostly issued by private companies, have yet to be able to increase market confidence, particularly after the collapse of several stablecoin economies.

Hong Kong Government Could Issue Digital Dollar as Stablecoin

Jiezhuang suggested that the Hong Kong government could issue the digital Hong Kong dollar as a stablecoin and connect it to decentralized finance systems. This would allow the web3 ecosystem to benefit and make the stablecoin an important part of the web3 ecosystem and virtual asset trading platforms in the country.

Hong Kong Regulating Cryptocurrency Adoption

Hong Kong is actively seeking to regulate the adoption of cryptocurrencies. Following a change to provincial legislation, financial services industry participants in Hong Kong are preparing to allow retail users to trade virtual assets soon. The government also recently approved a change to the Anti-Money Laundering and Counter-Terrorist Financing Act, which makes the Securities and Futures Commission responsible for regulating virtual asset service providers.

The amendment introduces a licensing system for enterprises that offer virtual asset services, enabling ordinary people to exchange them. Previously, only institutional investors with at least $1 million in liquid assets were allowed to invest in digital assets.