Quick Breakdown
- Hong Kong Legislative Council’s latest report highlights growing support for RMB-backed stablecoins.
- The Stablecoin Ordinance, effective August 1, draws interest from major Chinese state-owned firms.
- Authorities warn against unlicensed stablecoin projects as licensing framework remains pending.
Hong Kong legislature signals interest in RMB-backed stablecoin
The Hong Kong Legislative Council has released a special bulletin detailing new policy directions in the region’s digital finance landscape, spotlighting the growing role of stablecoins including those backed by China’s renminbi (RMB).
Published on October 13, the “Special Report” offers insights into government priorities across fintech, digital assets, and cross-border finance. The report underscores Hong Kong’s ambition to remain an international financial hub by integrating blockchain and stablecoin innovations into its broader economic framework.
Push for RMB-backed stablecoin development
For the first time since August, the bulletin explicitly references the government’s intention to seek central support for developing offshore RMB-pegged stablecoins. Such an initiative could bolster cross-border settlements and improve payment efficiency, positioning Hong Kong as a global leader in Web3 and digital asset innovation.
The city has already taken legislative steps with the Stablecoin Ordinance, which came into effect on August 1. Lawmakers are now considering amendments based on industry feedback, including expanding the pool of licensed stablecoin issuers to include those pegged to traditional fiat currencies.
China’s state firms show interest in licensing
Following the rollout of the new regulatory framework, the Hong Kong Monetary Authority (HKMA) has reportedly received strong interest from several state-backed Chinese corporations, including China National Petroleum Corporation and Bank of China.
PetroChina, in particular, is said to be exploring the use of stablecoins to facilitate cross-border energy trade settlements, signaling Beijing’s growing willingness to test stablecoin applications beyond domestic markets.
Regulatory warnings amid rising investor activity
Despite mounting enthusiasm, regulators remain cautious. The HKMA has warned the public against unlicensed entities claiming to hold stablecoin issuer permits, clarifying that the official licensing process has yet to begin.
Authorities are also monitoring a rise in unauthorized stablecoin projects, emphasizing the importance of investor vigilance as Hong Kong transitions into a more tightly regulated digital finance ecosystem. Beyond stablecoins, the government’s fintech strategy includes the tokenization of green bonds, with over $43 billion in sustainable bond issuances planned.
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