- Hong Kong regulator suggests issuing digital Hong Kong greenback stablecoin.
- The lawmaker believes this could bolster web3 growth.
- Hong Kong has been actively trying to regulate cryptocurrencies.
In keeping with Wu Jiezhuang, a member of the e Hong Kong Legislative Council, growing the nation’s digital Hong Kong greenback right into a steady forex may supply a slew of advantages for the nation and play a major half in drawing in web3 startups to the nation.
Jiezhuang is a founding member of G-Rocket, a startup accelerator he co-founded together with Legislative Council member Johnny Ng Package-Chong in 2016. This system plans to assist 1,000 Web3 start-ups arrange their companies in Hong Kong within the coming years.
Jiezhuang’s feedback got here in a latest interview, the place he mentioned the perks of turning the nation’s digital greenback right into a stablecoin. Per Jiezhuang, the present stablecoins are primarily issued by non-public entities and haven’t been capable of bolster market confidence, particularly following latest occasions that noticed the collapse of a number of stablecoin economies.
As such, Jiezhuang urges that the Hong Kong authorities can think about issuing the digital Hong Kong greenback as a stablecoin, and join it to the decentralized finance eco-systems, thus permitting the web3 ecosystem to learn from it. The regulator believes such a stablecoin may turn into an integral a part of the web3 ecosystem and digital asset buying and selling platforms within the nation.
In the meantime, Hong Kong has been actively eyeing cryptocurrency adoption in a regulated setting. As reported by Coin Version, following a vital change to provincial laws, business individuals in Hong Kong’s monetary providers sector are actively establishing the groundwork to permit retail customers to commerce digital property within the coming months.
As well as, the Hong Kong authorities authorized a change to the Anti-Cash Laundering and Counter-Terrorist Financing Act final month, making the Securities and Futures Fee (SFC) chargeable for regulating virtual-asset service suppliers.
The modification introduces a licensing mechanism for enterprises that supply digital asset providers, permitting common folks to trade them. Beforehand, solely institutional buyers with a minimal of $1 million in liquid property have been allowed to put money into digital property.