As reported by Cointelegraph, cryptocurrency and blockchain advocates published a report for the Hong Kong government. It is expected that this report was made to issue a stablecoin pegged to the region’s dollar, which might challenge the popularity of Tether and USD Coin.
Sources revealed that “Issuing a stablecoin pegged to the Hong Kong dollar not only helps to solidify Hong Kong’s leadership in the blockchain sector but also propels the progress of the digital Hong Kong dollar, enhancing transaction efficiency, reducing transaction costs, improving current payment systems, and further strengthening Hong Kong’s fintech capabilities,” Cointelegraph added.
It is also expected that “The Hong Kong Dollar stablecoin can enhance the efficiency and inclusiveness of Hong Kong’s financial system; its stability, freedom of exchange, high security, openness, and cross-border liquidity can support a wider range of financial innovations,” Cointelegraph highlighted.
Furthermore, “The risks borne by the government-issued HKDG are significantly lower than those of the Hong Kong Dollar stablecoin issued by private institutions,” Cointelegraph concluded.
(With insights from Cointelegraph)