The Hong Kong government is again trying to keep pace with the technology progress, by promoting the development of digital assets, contrary to tight policies in the Western world. Vice President of Hong Kong University of Science and Technology and Chairman of Meitu proposed issuing a Hong Kong Dollar stablecoin backed by Hong Kong’s foreign exchange reserves (HKDG).
They believe that a government-backed stablecoin will have higher credibility and lower risk than those issued by private institutions.
HKDG can challenge the dominance of US Dollar stablecoins USDC and USDT, and become a mainstream stablecoin.
The authors of this proposal see additional benefits:
- de-dollarization of the Hong Kong economy;
- provide additional liquidity for government investment projects;
- HKDG can assist in the digitization of traditional assets;
- strengthen Hong Kong’s position as an international financial center;
- HKDG can promote financial innovation, and attract blockchain and digital currency enterprises to Hong Kong.
The full proposal can be found here.