July 07, 2025<\/p>\n\n\n\n
By Anjali Kochhar<\/p>\n\n\n\n
Economist and former People\u2019s Bank of China adviser Huang Yiping has suggested that Hong Kong could serve as an ideal launchpad for a stablecoin pegged to the offshore yuan. The move could support Beijing\u2019s long-term goal of yuan internationalisation while sidestepping the capital controls in mainland China.<\/p>\n\n\n\n
In a recent interview with Yicai, cited by the South China Morning Post (SCMP), Huang explained that issuing a stablecoin within the mainland would be extremely difficult due to the country’s closed capital account. \u201cAs China\u2019s capital account is not fully liberalised, it would be very difficult to roll out a stablecoin domestically,\u201d he said.<\/p>\n\n\n\n
Instead, he pointed to Hong Kong\u2019s more open financial system and mature regulatory framework. Huang noted that Hong Kong has already shown a more progressive stance toward financial innovation compared to the mainland. The city recently passed a law to regulate stablecoins, setting global benchmarks for licensing, reserve backing, regular audits, and redemption mechanisms. These rules are set to take effect from August 1.<\/p>\n\n\n\n
However, Huang raised concerns about the long-standing peg between the Hong Kong dollar and the US dollar. \u201cThe issue with issuing a stablecoin in Hong Kong is that if it\u2019s pegged to the Hong Kong dollar, which in turn is pegged to the US dollar, ultimately it\u2019s the US dollar that plays the foundational role,\u201d he told SCMP.<\/p>\n\n\n\n
Huang\u2019s comments align with the views of several financial leaders and crypto experts who have been promoting Hong Kong as a testbed for yuan-linked digital currencies. Xiao Feng, chairman of HashKey Group, previously described Hong Kong as \u201ca testing ground for the mainland\u201d due to its unique status under the \u201cone country, two systems\u201d principle.<\/p>\n\n\n\n
Morgan Stanley analysts have also highlighted the city\u2019s large offshore yuan liquidity pool estimated at one trillion yuan as a major advantage for stablecoin development. In addition, the Hong Kong government\u2019s latest digital asset policy blueprint promotes public use of stablecoins and includes tax concessions for digital asset holders starting in 2025.<\/p>\n\n\n\n
Industry leaders like Animoca Brands\u2019 chairman Yat Siu have praised the new stablecoin law, saying Hong Kong is leapfrogging global competition in digital finance. At the same time, legal experts have warned that compliance costs could be a challenge for smaller players.<\/p>\n\n\n\n
Huang\u2019s proposal reflects a growing belief that Hong Kong could play a pivotal role in bridging China\u2019s financial system with global digital innovation, especially in the realm of stablecoins.<\/p>\n\n\n\n
About the author<\/strong><\/strong><\/p>\n\n\n\n Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" July 07, 2025 By Anjali Kochhar Economist and former People\u2019s Bank of China adviser Huang Yiping has suggested that Hong Kong could serve as an ideal launchpad for a stablecoin pegged to the offshore yuan. The move could support Beijing\u2019s long-term goal of yuan internationalisation while sidestepping the capital controls in mainland China. In a […]<\/p>\n","protected":false},"author":4,"featured_media":7933,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-7931","post","type-post","status-publish","format-standard","has-post-thumbnail","category-uncategorized"],"yoast_head":"\n