Fang Hongjin, Co-chairman of Hong Kong Blockchain Affiliation: Hong Kong Authorities Ought to Not Situation Hong Kong Greenback Secure Forex

Fang Hongjin, co-chairman of the Hong Kong Blockchain Affiliation, mentioned in a current assertion that he disagrees with the Hong Kong authorities’s proposal to concern a Hong Kong greenback stablecoin backed by international change reserves.

Fang Hongjin questioned within the article whether or not the Hong Kong authorities wants to make use of international change reserves as collateral for the issuance of secure cash if it plans to launch a digital Hong Kong greenback. He believes that the Hong Kong authorities, because the issuer of the fiat Hong Kong greenback, mustn’t create spinoff merchandise with its personal fiat foreign money as collateral, as this might result in confusion and sensible difficulties.

Fang Hongjin emphasised that the Hong Kong authorities shouldn’t be the entity liable for issuing Hong Kong greenback stablecoins. As a substitute, he steered that personal establishments ought to concern stablecoins underneath the supervision and supervision of the Hong Kong authorities. He believes it’s wiser for personal entities to tackle this duty, as they’ll extra successfully cope with the complexities of stablecoin issuance.

As well as, Fang Hongjin expressed concern in regards to the inflow of cryptocurrency tasks that don’t meet US regulatory necessities into Hong Kong searching for asylum. He believes that these tasks are more likely to fail to satisfy Hong Kong’s current and upcoming monetary rules.

The issuance of stablecoins has been a subject of intense debate and exploration throughout the blockchain and cryptocurrency group. Stablecoins are designed to offer stability in risky cryptocurrency markets by pegging their worth to fiat currencies or different property.

Whereas they provide benefits corresponding to quicker transactions and borderless funds, considerations about their regulatory oversight and potential dangers have sparked dialogue amongst policymakers and trade specialists.

As an necessary voice for 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 policymakers, regulators and trade stakeholders to advertise accountable blockchain innovation and advocate for enabling regulatory frameworks.