Stablecoins are seen as a key opportunity for the financial development of Hong Kong, especially the development of renminbi stablecoin to become a global stablecoin issuance center.

According to Yao Zhisheng, the development of the Hong Kong dollar stablecoin not only focuses on the value of the local currency but also aims to enhance Hong Kong's position in the internationalization of the renminbi through offshore stablecoins.

MAIN CONTENT

  • The Hong Kong stablecoin does not have a large international market but holds strategic financial significance.

  • The development of offshore renminbi stablecoin is considered the biggest driving force for stablecoin development in Hong Kong.

  • The proposal to develop an officially certified renminbi stablecoin aims to increase trust and expand the market.

How do stablecoins affect the financial development of Hong Kong?

Yao Zhisheng - member of the Standing Committee of the National Political Consultative Conference of China evaluates stablecoins as a significant opportunity to boost Hong Kong's finance. Although the application market for the Hong Kong dollar stablecoin is not very broad and trading volume is not large, in the long term, stablecoins can help Hong Kong grow more modern finance.

According to Ming Pao's report on July 8, 2024, the development of stablecoins aligns with the trend of internationalizing currency and digitizing finance, thus allowing Hong Kong to expand its role as a global financial center based on Blockchain.

Why does the Hong Kong dollar stablecoin not have significant potential in the international market?

Expert assessments show that the demand for international payments with the Hong Kong dollar is limited; therefore, HKD stablecoin will not be widely used. The level of usage and liquidity will struggle to achieve large scale compared to stablecoins of major currencies like USD or renminbi.

This stems from the economic position and international role of the Hong Kong dollar not being on par with the renminbi or USD. Therefore, the development of HKD stablecoin is more supportive rather than foundational for global payments.

What role does the renminbi stablecoin play in Hong Kong's strategy?

Yao Zhisheng emphasizes that the biggest opportunity with stablecoins in Hong Kong lies in offshore renminbi stablecoin. Hong Kong has the potential to become the official renminbi stablecoin issuance center, developing an ecosystem to serve RMB-related cryptocurrency transactions.

We need an officially recognized and supported offshore renminbi stablecoin by the government to build market trust, aiming to promote sustainable development of the DeFi platform.
Yao Zhisheng, member of the Standing Committee, National Political Consultative Conference of China, July 8, 2024

If this proposal is implemented, it will help Hong Kong not only serve as a monetary bridge for the internationalization of the renminbi but also assert its leading position in the DeFi and stablecoin sectors both regionally and globally.

What are the benefits of developing an official renminbi stablecoin in Hong Kong?

The emergence of offshore official renminbi stablecoin will increase market confidence due to government backing and strict legal control. This will attract investment and facilitate the development of new financial services on Blockchain platforms.

Criteria HKD Stablecoin Offshore Renminbi Stablecoin Market Size Limited, mainly domestic Large, aimed at the global market Strategic Role Supports domestic finance Important for the internationalization of RMB Market Confidence Not strongly developed High due to official certification Technology Development Limited Deeply invested and secure

Frequently Asked Questions

What role do stablecoins play in the financial market of Hong Kong? Stablecoins are tools to help Hong Kong develop modern finance, gradually increasing its role as a center for cryptocurrency transactions and the internationalization of the renminbi. Why is the Hong Kong dollar stablecoin not popular in the international market? Because the Hong Kong dollar has a limited scope for international payment demand, HKD stablecoin struggles to achieve large transaction scales or diverse applications. What strengths does the offshore renminbi stablecoin have? Supported and certified by the government, the offshore renminbi stablecoin helps boost confidence, attract investment, and aims for global development. Who proposed the development of an official renminbi stablecoin in Hong Kong? Yao Zhisheng, a member of the Standing Committee of the National Political Consultative Conference of China, made this call. How will the development of stablecoins affect the internationalization of the renminbi? Offshore renminbi stablecoin will help create a financial bridge internationally, improve liquidity, and promote the use of renminbi on a global scale.

Source: https://tintucbitcoin.com/yao-zhisheng-de-xuat-hong-kong-phat-trien-tien-dien-tu/

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