HK Chamber Of Commerce Favour Yuan-Backed Stablecoin
The HKGCC proposed issuing a stablecoin backed by the Chinese yuan as part of the local government’s upcoming budget address.
The HKGCC argues that the issuance of yuan-backed stablecoins would promote the broader adoption of the RMB and facilitate international trade transactions.
The HKGCC also suggests that Hong Kong could offer a potential tailwind for East Asia as crypto volumes plummeted due to anti-crypto regulations in China.
The HKGCC also suggests exploring the creation of a “Virtual Asset Connect Scheme” with a daily limit of approximately HK$20 billion, which is $2.5 billion.
The Hong Kong government’s growing status as a crypto hub has also raised speculation about the Chinese government’s reversal of course on digital assets or increased openness to crypto initiatives.
(With inputs from Shikha Singh)
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