Fang Hongjin, co-chairman of the Hong Kong Blockchain Affiliation, mentioned in a latest assertion that he disagrees with the Hong Kong authorities’s proposal to challenge a Hong Kong greenback backed by overseas change reserves.
Fang Hongjin requested within the article whether or not the Hong Kong authorities ought to use overseas change 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, shouldn’t create derivatives with its personal fiat forex as collateral, as this might 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 an alternative, he steered that personal establishments challenge stablecoins below the oversight and supervision of the Hong Kong authorities. He believes it’s wiser for personal entities to tackle this accountability, as they’ll extra successfully deal with the complexities of issuing stablecoins.
As well as, Fang Hongjin expressed concern concerning the inflow of cryptocurrency tasks that don’t meet US regulatory necessities in Hong Kong in search of asylum. He believes these tasks might not meet Hong Kong’s current and upcoming monetary rules.
The issuance of stablecoins has been the topic of intense debate and exploration throughout the blockchain and cryptocurrency group. Stablecoins are designed to offer stability in risky cryptocurrency markets by pegging their worth to fiat currencies or different property.
Though they provide advantages akin to sooner transactions and borderless funds, considerations about their regulatory oversight and potential dangers have sparked dialogue amongst policymakers and trade consultants.
As an necessary spokesperson for the blockchain trade, the Hong Kong Blockchain Affiliation performs a significant position within the growth and adoption of blockchain know-how in Hong Kong. The affiliation actively engages with policymakers, regulators, and trade stakeholders to advertise accountable blockchain innovation and advocate for supportive regulatory frameworks.
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