Hong Kong’s central bank is moving fast to launch its first batch of stablecoin licenses this March. Eddie Yue, the head of the Hong Kong Monetary Authority (HKMA), shared this update during a recent government meeting. Right now, officials are reviewing 36 different applications from companies that want to issue these digital coins.
This move is a big deal because the central government in Beijing usually hates everything related to cryptocurrency. However, experts think China is letting Hong Kong try this as a safety net rather than changing its mind about the whole industry. While mainland China keeps its strict ban, Hong Kong is carving out its own path to stay a global financial hub.
Stablecoins are a specific type of crypto. Instead of the price swinging wildly like Bitcoin, these coins track the value of steady assets like gold or the Hong Kong Dollar. They basically act like digital versions of cash. Because they stay steady, people now use them for over half of all transactions that happen on the blockchain.
Hong Kong officials see a lot of potential in this technology. They believe stablecoins can make international payments much faster and cheaper. Big banks could use them to move money across borders without the usual delays or high fees. Tech firms, such as Payment Cards Group, also argue that these coins will lead to quicker refunds and better exchange rates for regular customers.
The city already laid the groundwork for this change. They passed a new law in May and started taking applications in August. Under these rules, any company that wants to sell a stablecoin in Hong Kong must get a license and follow strict guidelines.
Hong Kong isn’t the only place heading in this direction. Countries in Europe and Japan have already set up their own rules for digital coins. By moving forward now, Hong Kong hopes to keep up with the rest of the world. Even if Beijing remains skeptical, Hong Kong is betting that regulated digital cash is the future of global banking.
