Hong Kong Ignites Stablecoin Vision: Promise, Power & Pitfalls – BI Replay
Hong Kong's stablecoins could proliferate with an estimated market potential of $4.6 trillion for asset tokenization and attract growing interest from Chinese tech juggernauts led by Ant and JD.com, with this as a growth boost to the city's virtual banks too. These tokens could become a popular medium of cross-border transactions, yet won't address any concerns about the city's FX peg. With the potential to be backed by the offshore yuan, HK's stablecoins can represent another avenue for yuan internationalization. Globally, US dollar-pegged stablecoins could fight central banks' De-Dollarization move, while Tether dominates fiat-backed stablecoins at present.
Bloomberg Intelligence senior banking & fintech analyst Francis Chan, together with Chief Asia FX and Rates Strategist Stephen Chiu will share our latest thoughts on this topic.