The Hong Kong Stablecoin Ordinance and Offshore RMB Stablecoins
The upcoming enactment of the Hong Kong Stablecoin Ordinance, set for August, signifies a major advancement towards the trial of offshore RMB stablecoins. An article by the Economic Observer outlines a strategic framework for this initiative, drawing parallels to the RMB pilot program launched in 2003.
Phased Rollout of RMB Stablecoin Initiative
This rollout is anticipated to occur in three distinct phases:
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Phase 1: Sandbox Trials (2025-2026)
The focus will be on sandbox trials, allowing Chinese licensed institutions to issue CNH stablecoins specifically for trade within the Greater Bay Area.
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Phase 2: Regional Expansion (2026-2027)
The subsequent phase will expand regionally and include cross-border projects like mBridge, which facilitates collaboration between central banks through digital currencies. During this stage, the pilot program will also experiment with real-world asset applications, including new methods of bond tokenization.
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Phase 3: Global Outreach (Post-2028)
Looking beyond 2028, the third phase aims for global outreach and acceptance. Partnerships with organizations such as the International Monetary Fund (IMF) will be crucial. This collaboration will focus on developing technical and regulatory standards to elevate the CNH stablecoin as a key instrument in regional commodity pricing.
