Hong Kong Considers Issuing a CBDC as a Stablecoin
Hong Kong authorities prepare to create a CBDC in the form of a 100% government-backed stablecoin.
Mr Wu Jiezhuang, Member of the Legislative Assembly of the Hong Kong Special Administrative Region It is believed that converting the Hong Kong Digital Dollar (e-HKD) to Stablecoin will be more beneficial and can effectively apply Web3 technology.
Governments are looking to establish a CBDC as a stablecoin, which will further strengthen investor confidence in the Web3 industry and protect investors from hacking.
“Most stablecoins are issued by private companies and are not under government control,” said Wu Jiezhuang, referring to several stablecoin projects that failed to affect the market. Ripto is a domino effect.
The Hong Kong legal sector added that the creation of a CBDC in the form of a stablecoin would make the government more accessible to DeFi and Web3 platforms.
“The Hong Kong government is considering creating a Hong Kong dollar currency that can be connected to Decentralized Finance and making it an integral part of virtual currency trading platforms.”