HKUST Vice-President Urges Hong Kong to Issue Stablecoin HKDG

In response to TKWW, key figures together with HKUST Vice-President counsel that the Hong Kong authorities ought to situation its personal stablecoin, known as HKDG, as a strategic transfer to bolster town’s digital financial system.

Hong Kong SAR authorities’s ongoing promotion and acceptance of digital belongings positions it forward of nations or areas such because the U.S and Singapore. On this context, stablecoins, bridging the hole between conventional finance and the digital financial system, have gotten more and more vital. Issuing a stablecoin linked to the Hong Kong greenback might considerably improve transaction effectivity, scale back prices, and strengthen the area’s fintech capabilities.

Nonetheless, the federal government’s present stance of encouraging personal establishments to situation Hong Kong greenback stablecoins is seen as too conservative by business insiders. This technique would possibly result in stablecoins with marginal market influence, a priority underscored by the instance of Singapore’s XSGD.

The specialists argue {that a} Hong Kong greenback stablecoin, supported by town’s international change reserves and authorities laws, might present a double assure of security. Such a stablecoin, HKDG, might pose a problem to dominant stablecoins like USDT and USDC, which at the moment maintain market capitalizations of $830 billion and $280 billion, respectively. Given Hong Kong’s international change reserves of $430 billion, a government-backed HKDG affords larger credibility and decrease danger.

The proposed HKDG might additionally symbolize a big step in direction of de-dollarization. Whereas it may not singlehandedly disrupt the dominance of the US greenback, it might problem its supremacy inside the digital asset ecosystem. The profitable implementation of HKDG might encourage different sovereign currencies to observe swimsuit, selling diversification within the world monetary market.

In essence, the decision for a government-backed stablecoin like HKDG underscores each the potential and urgency for Hong Kong to ascertain a extra commanding presence within the quickly rising digital financial system.

This proposition is co-authored by Wang Yang, Vice President and Chief Science Advisor of the Hong Kong College of Science and Expertise and the Hong Kong Web3.0 Affiliation, alongside famend angel investor Wensheng Cai, Web3.0 Tech firm founder Zhibin Lei, and doctoral pupil Yizhou Wen from the Hong Kong College of Science and Expertise. Collectively, they’re advocating for a big shift in technique.