Hong Kong Considers Launching HKDG Stablecoin to Boost Digital Economy

The Hong Kong government is considering creating its own stablecoin HKDG, which could provide more confidence and reduce risk compared to private stablecoins, potentially competing with major stablecoins such as USDT and USDC. By backing HKDG with foreign exchange reserves, the government seeks to foster financial innovation and maintain its leadership in the blockchain space. By issuing a Hong Kong dollar-pegged stablecoin (HKDG), the government aims to increase transaction efficiency, reduce costs and improve the existing payment system. The move is expected to strengthen Hong Kong's fintech capabilities and improve the efficiency and inclusiveness of its financial system. However, the government is currently too cautious about allowing private institutions to produce Hong Kong dollar stablecoins, which may limit its market share and overall impact.