The first licenses for stablecoins are about to be issued in Hong Kong. Although the official launch of the regulatory rules is scheduled for August, Christopher Hui, in charge of financial services and treasury, hinted in a conversation with a local newspaper that not everyone will get the green light. In his opinion, very few licenses will be issued, literally a few.

Hong Kong does not just allow a new instrument, but wants it to solve specific problems in the economy. Hui explained that their goal is to see how stablecoins will help in international settlements. Where traditional systems perform poorly due to risks or poorly developed infrastructure, digital analogues can be an excellent solution, reducing costs and simplifying processes. We are talking about countries with unstable currencies or underdeveloped financial systems.

Interestingly, at first the authorities wanted to focus on projects pegged to the Hong Kong dollar. But then they started talking about the possibility of creating offshore stablecoins based on the yuan. This idea is being actively promoted by Chinese companies such as JD. com and Ant Group, but Hui stressed that this is a difficult issue that requires coordination with Chinese regulators.

Although the choice of collateral currency is not formally limited, the authorities warn that they will carefully assess the macroeconomic consequences. Each project will be considered in terms of its impact on the currency markets and financial stability of the region.

The Hong Kong approach is very different from the policy of mainland China, where cryptocurrencies are banned. Hong Kong wants to be an open jurisdiction, offering crypto businesses clear rules of the game, including licenses for exchanges. The pilot zone for stablecoins unites banks and digital companies, showing an integrated approach to the new financial reality.