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Hong Kong Explores Launching Government-Backed Stablecoin to Challenge USDT and USDC Dominance

July 4 (Cointime) - Hong Kong is considering launching its own Stablecoin, HKDG, to compete with established Stablecoins such as USDT and USDC. The proposal, co-authored by prominent figures in academia and industry, aims to enhance Hong Kong's position in the digital currency landscape and promote financial innovation.

By backing HKDG with its foreign exchange reserves, the government seeks to improve transaction efficiency, reduce costs, and enhance the efficiency and inclusiveness of its financial system.

While private institutions are currently allowed to issue Hong Kong Dollar Stablecoins, the proposal urges the SAR government to issue a government-backed HKDG to benefit from government regulation and transparency provided by blockchain technology.

Tether USDt Tether USDt $1.00
-0.02%
Hong Kong stablecoin
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