Hong Kong authorities will consider the HKGCC's proposal to issue stablecoins in yuan

The Hong Kong General Chamber of Commerce (HKGCC) has asked the local government to include the issuance of stablecoins pegged to the Chinese yuan or a pool of fiat currencies in the budget of this special region of China next year..

The HKGCC proposes to launch digital stablecoins pegged to the Chinese digital yuan or backed by a basket of multiple fiat currencies, including the Chinese yuan, Hong Kong dollar and US dollar..

“Stablecoins could become one of the preferred payment options for a wide range of professionals. Given global trends, it is reasonable to expect further integration between the digital payments ecosystem and the real economy. Our proposal will serve to improve Hong Kong's overall operating environment, retain and attract business to the country, and reduce the challenges associated with the shortage of highly qualified personnel,» the HKGCC said in a statement..

The HKGCC called on the government to explore the possibility of creating a regulated “virtual asset scheme” for local crypto market participants with a daily limit of about HK$20 billion (approximately $2.5 billion), and to include measures in the new budget to ease the taxation of non-resident digital service providers Hong Kong.

Previously, the Securities and Futures Commission of Hong Kong (SFC) introduced a mandatory requirement for cryptocurrency exchanges to provide 50% insurance coverage for user deposits.