The Hong Kong Chamber of Commerce urged the local government to include the issuance of yuan-pegged stablecoins in the upcoming budget.
The proposal also includes the option to issue stablecoins backed by a basket of various currencies, including yuan. Currently, tokens based on the HKD and USD are permitted.
Separately, the organization called on the government to explore the creation of a so-called Virtual Asset Connect Scheme with a daily limit of about 20 billion HKD ($2.5 billion). The Chamber did not provide details of the mechanism.
The proposals are part of a set of measures aimed at improving Hong Kong’s economic situation. The document emphasizes retaining and attracting talent and business.
In December, HKMA, the Securities and Futures Commission, and the Treasury Bureau announced the necessity for stablecoin issuers to obtain licenses. The consultation document review will conclude at the end of February.
Eddie Yue, CEO of the HKMA, emphasized that stablecoins could serve as a bridge between TradFi and the virtual asset market.
In June 2023, the Hong Kong-based custodial and trust company First Digital announced the launch of First Digital USD (FDUSD), a stablecoin pegged to the US dollar.
Later, the CEO of USDC issuer Circle, Jeremy Allaire, predicted an enhanced role for the special administrative region in the digital asset and stablecoin market.