Hong Kong's upcoming stablecoin: five core questions, the last one is about the opportunities here**
1
What is Hong Kong's stablecoin? How is it different from U?
Hong Kong's stablecoin is a cryptocurrency pegged 1:1 to the Hong Kong dollar, and the issuer must obtain full government supervision and licenses. Compared with U (a stablecoin pegged to the US dollar), the core difference of Hong Kong's stablecoin is the currency and government endorsement, which is safer and has the opportunity to expand to daily use scenarios such as payment, not just limited to the crypto circle.
2
What is the purpose and significance of Hong Kong's launch of stablecoins?
Hong Kong aims to become a global Web3 center, and the Hong Kong dollar stablecoin is its core link. The current daily trading volume of the crypto market is about US$70 billion, and stablecoin transactions account for 60%. Stablecoins are a bridge between fiat currency and Web3. By launching a regulated Hong Kong dollar stablecoin, it is safer to enter the Web3 market and promote industry development. In addition, stablecoins have great potential in cross-border payments, clearing and financing, and may be part of the internationalization of the RMB.
3
When will the Hong Kong stablecoin be launched?
It is expected to be launched as early as next year. From the release of the discussion document by the HKMA in January 2022 to the recent completion of the regulatory system consultation summary and the announcement of the first batch of shortlisted issuers, it is expected that the drafting of the regulations will be completed by the end of this year and submitted to the Legislative Council for deliberation, and the legislation will be completed and officially launched as early as next year.
4
Who are the issuers of Hong Kong stablecoins? Why do they issue stablecoins?
Hong Kong will have multiple market-driven stablecoin issuers, and entities that meet the licensing conditions can apply. The first batch of shortlisted issuers include JD.com, Yuanbi and Standard Chartered, with significant first-mover advantages. The stablecoin business is very profitable. Taking Tether as an example, the circulation value of stablecoins is about US$110 billion, and the quarterly profit is US$4 billion, mainly from deposit and withdrawal fees and interest income.
5
What impact does Hong Kong stablecoin have on everyone? What opportunities are there?
For friends who trade across borders and use stablecoins, Hong Kong stablecoins are safer and more compliant. Hong Kong's Web3 industry's compliant licensed virtual asset exchanges, brokers and asset management companies also have opportunities. The track is not crowded yet, suitable for investment and development.
In addition, there may be some opportunities to be gained when stablecoins are listed, and specific opportunities will be shared further.
#美国大选如何影响加密产业？
#山寨季何时到来？
1
What is Hong Kong's stablecoin? How is it different from U?
Hong Kong's stablecoin is a cryptocurrency pegged 1:1 to the Hong Kong dollar, and the issuer must obtain full government supervision and licenses. Compared with U (a stablecoin pegged to the US dollar), the core difference of Hong Kong's stablecoin is the currency and government endorsement, which is safer and has the opportunity to expand to daily use scenarios such as payment, not just limited to the crypto circle.
2
What is the purpose and significance of Hong Kong's launch of stablecoins?
Hong Kong aims to become a global Web3 center, and the Hong Kong dollar stablecoin is its core link. The current daily trading volume of the crypto market is about US$70 billion, and stablecoin transactions account for 60%. Stablecoins are a bridge between fiat currency and Web3. By launching a regulated Hong Kong dollar stablecoin, it is safer to enter the Web3 market and promote industry development. In addition, stablecoins have great potential in cross-border payments, clearing and financing, and may be part of the internationalization of the RMB.
3
When will the Hong Kong stablecoin be launched?
It is expected to be launched as early as next year. From the release of the discussion document by the HKMA in January 2022 to the recent completion of the regulatory system consultation summary and the announcement of the first batch of shortlisted issuers, it is expected that the drafting of the regulations will be completed by the end of this year and submitted to the Legislative Council for deliberation, and the legislation will be completed and officially launched as early as next year.
4
Who are the issuers of Hong Kong stablecoins? Why do they issue stablecoins?
Hong Kong will have multiple market-driven stablecoin issuers, and entities that meet the licensing conditions can apply. The first batch of shortlisted issuers include JD.com, Yuanbi and Standard Chartered, with significant first-mover advantages. The stablecoin business is very profitable. Taking Tether as an example, the circulation value of stablecoins is about US$110 billion, and the quarterly profit is US$4 billion, mainly from deposit and withdrawal fees and interest income.
5
What impact does Hong Kong stablecoin have on everyone? What opportunities are there?
For friends who trade across borders and use stablecoins, Hong Kong stablecoins are safer and more compliant. Hong Kong's Web3 industry's compliant licensed virtual asset exchanges, brokers and asset management companies also have opportunities. The track is not crowded yet, suitable for investment and development.
In addition, there may be some opportunities to be gained when stablecoins are listed, and specific opportunities will be shared further.
#美国大选如何影响加密产业？
#山寨季何时到来？