Accelerating the Pace, Sailing Steadily Ahead
In a recent blog entry, Paul Chan Mo-po, the Financial Secretary of Hong Kong, underscored the burgeoning influence of digital assets in the region’s financial landscape. Highlighting significant growth, he reported that local banks had accomplished a staggering HKD 17.2 billion in digital asset transactions last year. Furthermore, the total digital assets held in custody by these banks amounted to HKD 5.1 billion by year-end.
Stablecoin Ordinance
In a noteworthy regulatory development, the Legislative Council has approved the “Stablecoin Ordinance,” which is set to take effect on August 1. This legislation is part of Hong Kong’s strategic initiative to cautiously foster the development of stablecoins, positioning the city as a pivotal player in the global stablecoin ecosystem.
This framework supports the principle of “one country, two systems,” functioning as a safeguard while also serving as an experimental platform that could guide broader financial developments throughout the nation.
Moreover, the new ordinance allows licensed issuers the flexibility to select from various fiat currencies as the basis for their stablecoins. This progressive move is aimed at drawing in institutions worldwide to leverage Hong Kong’s conducive environment for stablecoin issuance tailored to diverse real-world applications, thus boosting liquidity and enhancing the competitive dynamic of the territory’s financial market.
