Jeremy Allaire, head of USDC issuing company Circle, is “under no illusions” about the emergence of the crypto market in China, but is optimistic about Hong Kong. He stated this in an interview with SCMP.
“The reality is that every other major financial market in the world uses digital assets, as do the largest financial institutions. So for Hong Kong to be relevant, it needs to do that too,” he added.
In his opinion, the government of mainland China supports Hong Kong’s Web3 initiatives.
Allaire also noted that yuan-based stablecoins could bring more benefits to the PRC than the already existing CBDC.
“If the Chinese government wants the yuan to be used more freely in trade and commerce around the world, perhaps stablecoins are a better way to go than a central bank digital currency,” said the head of Circle.
As an example, Allair cited a stablecoin pegged to an offshore yuan.
He also stated that Circle is encouraged by the plans HKMA on regulation of the sector – by 2024, the agency will introduce mandatory licensing for issuers of “stable coins”.
“We are pleased that this direction is a priority for the Hong Kong government and the HKMA. This situation extremely positively motivates us to develop business here,” Allair summed up.
Earlier, the head of Circle spoke about plans to release a stablecoin in Japan. In his opinion, if this asset class is used in cross-border trading, the country will become an important market for the cryptocurrency industry.
Recall that in July, the Hong Kong government proposed issuing its own “stable coin” HKDG to compete with existing industry giants in the face of USDT and USDC.
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