Hong Kong aims to become a leader in digital finance and Web 3.0 technology. To facilitate this step, they plan to create their own stablecoin, a cryptocurrency pegged to fiat currency at a 1:1 ratio. The blockchain technology at its core ensures stability, security and transparency.
Chen Haoliang of Hong Kong's Financial Services and Treasury Bureau told a forum on financial technology. He noted that public hearings had been held to launch stablecoin and that they planned to have a regulatory framework in place by the end of 2024. He also mentioned that the Hong Kong government is actively involved in the virtual asset value chain and has recently successfully issued tokenised bonds.
Tokens digitised through the introduction of blockchain technology are called tokenised bonds. The underlying asset of such securities is linked to their value and they have various advantages over conventional bonds, including lower fees, faster trading and higher liquidity.
Hong Kong's stablecoin is backed by the Hong Kong dollar and will make life easier for residents of the region, as well as businesses, by allowing them to make fast digital payments. The coin also promotes integration between the cryptocurrency ecosystem and the traditional financial system, helping Hong Kong to become more globally competitive.
Chen Haoliang noted that the number of financial technology companies in Hong Kong has grown rapidly in five years. There are now more than 800 of them, offering a wide range of services, such as virtual banking, virtual insurance and digital asset trading.
