Is there hope for RMB stablecoin? Hong Kong government official: Technically feasible, policy needs to be carefully weighed

In a recent media interview, Xu Zhengyu, Secretary for Financial Services and the Treasury of the Hong Kong Special Administrative Region, responded to the question of "whether stablecoins can be pegged to the RMB". He said that based on Hong Kong's regulatory framework, the law does not rule out the possibility of stablecoins pegging to the RMB, but whether it will be implemented still needs to consider the country's overall arrangements and strategic considerations in terms of exchange rates and monetary policies.

Xu Zhengyu pointed out that Hong Kong is gradually establishing a regulatory system for virtual assets and stablecoins. At present, relevant policy frameworks have been introduced and have attracted the attention of multiple capitals and enterprises. He emphasized that from a legal perspective, stablecoins can be anchored to a variety of legal currencies as their value benchmarks, including the US dollar, the euro, and even the RMB, and there are no technical and legal restrictions. However, if the RMB is involved, the relevant operations must be carried out under the premise of complying with the country's foreign exchange control and financial stability requirements.

"Peg to the RMB is not just a technical issue, but also involves the country's exchange rate mechanism, the independence of monetary policy and the interaction with the international financial environment. It is necessary to comprehensively assess the systemic risks and policy coordination pressures that may be caused," said Xu Zhengyu.

In recent years, as an important bridge connecting the mainland and the international financial system, Hong Kong has actively promoted the development of digital assets and financial technology. As the relevant legislation of stablecoins is about to be implemented in Hong Kong, the industry is generally concerned about its potential for integration with the RMB in the future, especially in the application space in cross-border trade and the construction of the digital RMB ecosystem.

However, Xu Zhengyu also emphasized that no matter which currency is anchored, the core goal of the regulator is still to ensure that the stablecoin has sufficient reserve support, transparent disclosure mechanism and strong risk management framework to maintain the stability of the financial system and consumer confidence.

It is generally believed that if the RMB stablecoin is piloted in Hong Kong in the future, it will promote the internationalization of the RMB. However, this path needs to be cautiously promoted under the premise of policy permission, mature mechanism and controllable risks.