In a bold move, the Hong Kong General Chamber of Commerce (HKGCC) has urged policymakers to consider a groundbreaking solution for the city’s economic growth. The influential business organization has proposed the issuance of Chinese yuan-linked stablecoins, backed by a diverse basket of fiat currencies.
Emphasizing the importance of retaining and attracting top talent and businesses, the HKGCC has also suggested the implementation of a “Virtual Asset Connect Scheme.”
While the specifics of this innovative proposal have not been disclosed, the organization has recommended an initial daily limit of around HK$20 billion ($2.5 billion).
This move has sparked excitement and anticipation in the business community, as Hong Kong strives to maintain its position as a global financial hub.
Hong Kong’s Highly Anticipated Budget: Aiming to Boost Economic Growth and Tackle Manpower Challenges.
As the Financial Secretary prepares to unveil his highly awaited budget speech this month, the HKGCC has submitted its forward-thinking recommendations. These proposals prioritize the need to improve Hong Kong’s overall business landscape and effectively tackle the pressing issue of manpower shortages. Stay tuned for the potential game-changing solutions to be announced.
As the year drew to a close, the Hong Kong Monetary Authority (HKMA) and the Financial Services and Treasury Bureau joined forces to release a joint consultation paper in December. This document announced that stablecoin issuers who base the value of their digital currency on one or more fiat currencies in Hong Kong would be required to obtain a license.
The two-month consultation period for this paper will come to an end at the conclusion of the month.
Excitingly, Christopher Hui, the Secretary for Financial Services and the Treasury, recently shared plans for a sandbox initiative in partnership with key players in the industry. This sandbox will serve as a testing ground for exploring stablecoin issuance in the region.
Similarly, Eddie Yue, the Chief Executive of the HKMA, emphasized the crucial role of stablecoins in bridging the gap between traditional finance and the virtual asset market. He stressed the need for stability in these digital currencies, particularly if they become a popular payment method among the general public. This, he believes, will further integrate the digital payment ecosystem with the real economy.
In a positive development, Hong Kong is expected to approve spot crypto exchange-traded funds (ETFs) by the middle of this year, according to experts. OSL, a Hong Kong-licensed cryptocurrency exchange, is already in talks with multiple fund companies, with five to ten firms considering introducing a spot crypto ETF.
Some have even made significant progress, raising hopes that Hong Kong’s first-ever spot crypto ETFs could be rolled out as early as mid-2024.
Currently, Hong Kong has listed several futures-based crypto ETFs, including the Samsung Bitcoin Futures Active ETF, CSOP Bitcoin Futures ETF, and CSOP Ether Futures ETF.
In yet another exciting development, local lawmaker Johnny Ng announced that Hong Kong will be hosting The Bitcoin Conference this year, adding to the city’s growing reputation as a hub for digital currency innovation.
