Fang Hongjin, chairman of the Hong Kong Blockchain Affiliation, stated in a current assertion that he disagrees with the Hong Kong authorities’s proposal to challenge a Hong Kong greenback stablecoin backed by overseas forex reserves.
Within the article, Fang Hongjin questioned whether or not the Hong Kong authorities wants to make use of overseas trade reserves as collateral to challenge stablecoins if it plans to challenge a digital Hong Kong greenback. He believes that the Hong Kong authorities, because the issuer of the fiat Hong Kong greenback, shouldn’t create derivatives with its personal fiat forex as collateral, as this might trigger confusion and sensible difficulties.
Fang Hongjin emphasised that the Hong Kong authorities shouldn’t be the entity accountable for issuing Hong Kong greenback stablecoins. As a substitute, he proposed that non-public establishments ought to challenge stablecoins below the supervision and oversight of the Hong Kong authorities. He believes that it could be wiser for personal entities to tackle this duty, as they will extra successfully take care of 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 into asylum-seeking Hong Kong. He believes these tasks are unlikely to adjust to Hong Kong’s present and future monetary laws.
Issuing stablecoins has been a subject of intense debate and analysis within the blockchain and cryptocurrency neighborhood. Stablecoins are designed to offer stability in risky cryptocurrency markets by tying their worth to fiat currencies or different property.
Whereas they provide advantages akin to quicker transactions and borderless funds, considerations about their regulatory oversight and potential dangers have sparked debate amongst policymakers and trade specialists.
As an essential consultant of the blockchain trade, the Hong Kong Blockchain Affiliation performs a significant position in shaping the event and adoption of blockchain know-how in Hong Kong. The affiliation actively engages with coverage makers, regulators and trade stakeholders to advertise accountable blockchain innovation and advocate for enabling regulatory frameworks.
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