A member of the Legislative Council of the Hong Kong Special Administrative Region, Wu Jiezhuang, believes that transforming the Hong Kong digital dollar (e-HKD) into a stablecoin would offer several benefits, especially for the adoption of advanced technologies, such as Web3.
The option to develop the Hong Kong digital dollar as a stablecoin would have the potential to effectively address the risks associated with Web3 virtual assets, Wu Jiezhuang said in an interview with China Blockchain News. He thinks also that this kind of development of the e-HKD would help the authorities to gain investor confidence in the Web3 sector and protect users from hacker-related issues.
He stated also: “The Hong Kong government can consider whether the issuance of digital Hong Kong dollars can be connected with decentralized finance and become an important infrastructure component of the virtual asset trading platform”.