According to Foresight News, HSBC stated that the Hong Kong dollar's linked exchange rate system will not be affected by the growth of the stablecoin market. The issuance of Hong Kong dollar stablecoins will not change the supply of Hong Kong dollars, and the linked exchange rate system remains unchanged.
However, if the scale of capital outflow is sufficient to push the USD/HKD exchange rate to the upper limit of the band, the exchange rate may be affected. As long as the Monetary Authority maintains sufficient foreign exchange reserves, the issuance of stablecoins and reserve management will not weaken the Hong Kong dollar peg mechanism.
