According to a report, the Hong Kong authorities have recently announced plans to issue a central bank digital currency (CBDC) as a stablecoin backed by the government. This move is seen as a significant step towards the adopting of new technologies, such as Web3, and is expected to bring various regional benefits.
Wu Jiezhuang, a member of the Legislative Council of the Hong Kong Special Administrative Region, has voiced his support for the idea, stating that the introduction of a stablecoin version of the Hong Kong digital dollar (e-HKD) would encourage the adoption of innovative technologies and help to position the region as a leader in the digital currency space.
In an interview with China Blockchain News on January 5, Jiezhuang stated that such a design of the e-HKD could help authorities gain investors’ trust in the Web3 industry and better protect users from issues such as hacks.
He further stated that the possibility of transforming the Hong Kong digital dollar (e-HKD) into a stablecoin has the potential to effectively address the risks associated with virtual assets in the Web3 ecosystem.
Jiezhuang spoke about the potential risks associated with stablecoins currently available on the market. He said, “These stablecoins are issued by private companies and are not subject to government supervision. This lack of oversight has raised concerns about the reliability and stability of these digital assets.”
In addition to his role as a member of the Legislative Council of the Hong Kong Special Administrative Region, Wu Jiezhuang is also a co-founder of G-Rocket, a startup accelerator dedicated to supporting the growth and development of Web3 businesses in the city-state.
Jiezhuang and his co-founder, Jonny Ng Kit-Chong, established G-Rocket in 2016 with the goal of attracting 1,000 Web3 businesses to Hong Kong over the next three years. G-Rocket aims to provide a range of resources and support to help these businesses succeed, including access to funding, mentorship, and networking opportunities.
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