Hong Kong Explores RMB-Backed Stablecoins
The Hong Kong Legislative Council released a report on October 13 about fintech and digital asset developments. The report highlights plans to explore offshore renminbi (RMB)-backed stablecoins. These stablecoins could enable faster cross-border trade settlements and digital payments.
Hong Kong is seeking support from China’s central government to develop these RMB-backed stablecoins. Major Chinese state-owned firms like PetroChina and Bank of China have shown interest in issuing their own RMB stablecoins. PetroChina aims to use stablecoins for cross-border payments related to its oil and gas exports.
Regulatory Progress and Challenges
The report notes a global shift toward cryptocurrencies, stablecoins, and Web3 technologies. Hong Kong’s government supports fintech innovation to maintain its status as an international financial center.
Since the Stablecoin Ordinance was introduced, several companies have applied for licenses from the Hong Kong Monetary Authority (HKMA). However, no licenses have been granted so far. In September, the HKMA warned investors against trusting unapproved projects claiming official licenses. Officials expect no stablecoin licenses will be issued this year.
Industry Trends and Collaborations
The stablecoin sector is growing, with many institutions planning to launch their own tokens. Recently, multiple banks formed a consortium to create G7-backed digital currencies.
For more details, read the full Legislative Council report.
