Hong Kong Offers to Issue competitors for dollar stablecoins

The Hong Kong government has put forward an initiative to launch the issue of its stable coins, which are called HKDG. They will receive government support with local reserves in foreign currency. The goal is to compete with USDT and USDC.

What is known about the initiative

The documentation informs that it is extremely important to use this class of crypto assets as conduits between TradeFi and the digital industry. It also shows the advantages of a stable coin that will be linked to the Hong Kong dollar:

  1. The coin will make financial assets more accessible.
  2. The efficiency of operations will be improved.
  3. The payment for the execution of financial transfers will decrease.
  4. Local Hong Kong payment services will be able to improve the quality of service provision.
  5. The financial and technical industry of Hong Kong will strengthen.

The initiative also states that the country's own reserves reach approximately $430 billion. This amount is more than the capitalization of popular dollar stablecoins. At the same time, the government understands the possible risks, both from the legal and technical side. However, it notes that they are much lower than cryptocurrencies issued by private companies.

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