Hong Kong to study Beijing's monetary policy, weigh risks before issuing yuan stablecoins
Hong Kong will assess the risks and study Beijing's monetary policies before launching yuan-pegged
stablecoins to bolster the internationalisation of the Chinese currency, according to a local senior official.
Christopher Hui Ching-yu, Secretary for Financial Services and the Treasury, said during a panel on Wednesday at
the Lujiazui Forum in Shanghai that while Hong Kong was technically ready to proceed, more time was needed to evaluate the advantages and disadvantages of issuing such a cryptocurrency.
'The risks and monetary policy directions must be studied, as there will be both benefits and drawbacks to issuing a linked stablecoin,' he said. 'We need to align our considerations with national policymaking and [Beijing's] road map [for yuan internationalisation].'
Last month, Hong Kong passed new legislation requiring issuers of stablecoins – digital tokens pegged to a reference asset like a fiat currency – to be licensed by the Hong Kong Monetary Authority (HKMA). The law is set to take effect on August 1.
People's Bank of China Governor Pan Gongsheng speaks at the opening ceremony of the Lujiazui Forum in Shanghai on Wednesday. Photo: AFP
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