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Hong Kong’s central bank is pressing ahead with plans to issue an initial batch of stablecoin licenses in March, despite China’s long-standing opposition to cryptocurrency activity. Experts, however, see Hong Kong’s stablecoin plans as more of a hedge than a reversal of Beijing’s position.
“We hope that by March we will be able to make a decision,” Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, told a Legislative Council meeting on Feb. 2, adding that the authority was reviewing an initial tranche of 36 stablecoin issuer applications, according to an official interpreter.
Yue’s update comes after plans to allow for the issuance of stablecoins within Hong Kong were reportedly stalled by Beijing.
Stablecoins are cryptocurrencies designed to maintain relatively stable values by pegging them to assets such as fiat currencies or gold, reducing price volatility compared with other digital tokens.
