HSBC: Hong Kong May See a Renminbi Stablecoin in the Future, with Some Large State-owned Enterprises Actively Exploring Stablecoin Applications

BlockBeats News, September 5th. According to the Hong Kong Economic Times, Liu Jing, Chief Economist of HSBC Global Asset Management in the Greater China region, mentioned that in his speech at the Lujiazui Forum in June, PBOC Governor Pan Gongsheng mentioned the establishment of an international operation center for the digital RMB. At the same time, some large central enterprises are actively exploring stablecoin applications. Chinese enterprises often face local currency volatility and a lack of hedging tools when investing in Belt and Road emerging markets. In this case, these enterprises may explore issuing their own RMB stablecoins to assist in investing in emerging markets.

Liu Jing pointed out that when multiple Chinese enterprises issue RMB stablecoins, the digital RMB may become an intermediary connecting various RMB stablecoins, which will help expand the international use of the RMB.

She further stated that Hong Kong, based on its cooperation with the mainland in the field of digital RMB and the newly enacted stablecoin legislation, may become the first venue for RMB stablecoin issuance. If Hong Kong were to introduce RMB stablecoins in the future, it is expected that they would be mainly used in early-stage enterprise payment scenarios, especially in cross-border payments.