Fang Hongjin, co-chairman of the Hong Kong Blockchain Affiliation, stated in a latest assertion that he disagrees with the Hong Kong authorities’s proposal to difficulty a Hong Kong greenback backed by international trade reserves.
Fang Hongjin requested within the article whether or not the Hong Kong authorities ought to use international trade reserves as collateral for issuing stablecoins if it plans to launch a Hong Kong digital greenback. He believes that the Hong Kong authorities, because the issuer of the Hong Kong fiat greenback, mustn’t create derivatives with its personal fiat foreign money as collateral, as this may result in confusion and sensible difficulties.
Fang Hongjin identified that the Hong Kong authorities shouldn’t be the accountable entity for issuing Hong Kong greenback stablecoins. As a substitute, he prompt that personal establishments difficulty stablecoins underneath the oversight and supervision of the Hong Kong authorities. He believes it’s wiser for personal entities to tackle this duty, as they’ll extra successfully deal with the complexities of issuing stablecoins.
As well as, Fang Hongjin expressed concern in regards to the inflow of cryptocurrency initiatives that don’t meet US regulatory necessities in Hong Kong in search of asylum. He believes these initiatives might not meet Hong Kong’s present and upcoming monetary rules.
The issuance of stablecoins has been the topic of intense debate and exploration inside the blockchain and cryptocurrency group. Stablecoins are designed to offer stability in unstable cryptocurrency markets by pegging their worth to fiat currencies or different property.
Though they provide advantages akin to quicker transactions and borderless funds, considerations about their regulatory oversight and potential dangers have sparked dialogue amongst policymakers and business specialists.
As an essential spokesperson for the blockchain business, the Hong Kong Blockchain Affiliation performs a significant position within the improvement and adoption of blockchain expertise in Hong Kong. The affiliation actively engages with policymakers, regulators, and business stakeholders to advertise accountable blockchain innovation and advocate for supportive regulatory frameworks.
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