Co-Chairman of the Hong Kong Blockchain Affiliation, Fang Hongjin, mentioned in a current assertion that he disagrees with the Hong Kong authorities’s proposal to difficulty a Hong Kong greenback stablecoin backed by international trade reserves.

Within the article, Fang Hongjin questioned whether or not the Hong Kong authorities ought to use international trade reserves as collateral for stablecoin issuance if it plans to difficulty a digital Hong Kong greenback. He believes that the Hong Kong authorities, because the issuer of fiat Hong Kong {dollars}, shouldn’t create by-product merchandise backed by its personal fiat forex. Doing so would result in confusion and sensible difficulties.

Fang Hongjin careworn that the Hong Kong authorities shouldn’t be liable for issuing HKD stablecoins. As an alternative, he steered that personal establishments ought to difficulty stablecoins beneath the supervision and oversight of the Hong Kong authorities. He believes it will be wiser for a personal entity to tackle this accountability, as it will successfully take care of the complexities of issuing stablecoins.

Fang Hongjin additionally expressed concern in regards to the inflow of asylum-seeking cryptocurrency tasks to Hong Kong that don’t meet US regulatory necessities. He believes these tasks will probably not meet Hong Kong’s current and future monetary laws.

Issuing stablecoins has been a topic of intense debate and exploration inside the blockchain and cryptocurrency neighborhood. Stablecoins are designed to deliver stability to the risky cryptocurrency market by locking their worth into fiat forex or different property.

Whereas these supply advantages comparable to quicker transactions and borderless funds, considerations about regulatory oversight and potential dangers have sparked debate amongst policymakers and business consultants.

As an essential voice of the blockchain business, the Hong Kong Blockchain Affiliation performs a key function in shaping the event and adoption of blockchain expertise in Hong Kong. The affiliation actively engages with coverage makers, regulators and business gamers to advertise accountable blockchain innovation and advocate for regulatory frameworks.