- Hong Kong authorities have called for the release of a USDT and USDC rival stablecoin
The Hong Kong authorities called for the issue of their own stablecoin competitor of USDT and USDC.
The authors of the initiative think that the asset pegged to the Hong Kong dollar will increase the efficiency of transactions and will provide extra liquidity for state investment projects.
The Hong Kong authorities proposed to issue their own "stablecoin" HKDG secured with the currency reserves of the jurisdiction to compete with the market giants USDT and USDC. It was reported by The Block referring to the appeal addressed to the authorities of the Special Administrative Region of China, the authors of which include the Vice-Chancellor of the Hong Kong University of Science and Technology, chief scientific adviser of the Hong Kong Association of web3.0 Wang Yang.
The authors of the initiative believe that a local currency-linked asset would provide many benefits: expanding financial accessibility, increasing the efficiency of transactions, reducing transfer costs, and improving the performance of local payment systems.
The proposal specifies that Hong Kong's currency reserves (approximately $430 billion as of March 2023) exceed the combined capitalization of USDT ($83.3 billion) and USDC ($27.7 billion). In this situation, the authors of the idea believe, a stable HKDG coin, backed by the government, would ensure a higher level of confidence and lower risk.
According to the authors of the initiative, HKDG will benefit from state regulation and transparency of transactions provided by blockchain technologies. They are also confident that the stablecoin will help Hong Kong move toward de-dollarization and challenge the dominance of the U.S. dollar in the crypto-ecosystem.
In late May, Chinese police detained a team from Trust Reserve, the developers of CNHC and HKDC, according to PANews. Employees of the firm stopped communicating on May 29 and later it was reported that they were detained and their families were notified by police.
Trust Reserve (formerly CNHC Group) has been issuing CNHC sticky coins pegged to the offshore yuan (CNH) exchange rate and HKDС sticky coins pegged to the Hong Kong dollar.
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