Chair of HKIIF Calls for Hong Kong to Create Stablecoin Pegged to CNY

The Hong Kong Institute for International Finance Event

The Chairman of the Hong Kong Institute for International Finance (HKIIF), Xiao Geng, recently discussed the advantages of a CNY-pegged stablecoin for Hong Kong at an event.

Xiao Geng’s Speech

Xiao delivered a speech at “The First Shenzhen Finance Forum and The Opening Ceremony of Shenzhen Finance Institute,” hosted by Renmin University of China. The event focused on digital finance.

Hong Kong’s Special Status for Chinese Yuan

Xiao emphasized that a stablecoin pegged to the Chinese yuan could boost the offshore CNY market and reinforce Hong Kong’s role as an international financial center.

• Hong Kong’s Significance in Promoting the Chinese Yuan
• Greater Bay Area’s Innovative Cross-Border CNY Products
• Financial Innovations in Hong Kong

Advocacy for a Greater Bay Area Stablecoin

Xiao proposed the development of a Greater Bay Area stablecoin linked to the Chinese yuan. This stablecoin, built on regulated blockchains and digital smart contracts, would enhance Hong Kong’s global financial standing.

Benefits of CNY-Pegged Stablecoin

Xiao outlined the advantages of a CNY-pegged stablecoin for Hong Kong, including:

• Strengthening Hong Kong’s Position as an Experimental Zone for CNY Internationalization
• Enhancing Boundary-Less CNY Products
• Integrating Mainland Onshore and Hong Kong-Macau Offshore Financial Systems
• Diversifying Offshore CNY Market Products

Moreover, the stablecoin could serve as a safeguard against potential risks in the USD-dominated international financial system, providing resilience in case of a USD collapse where the Hong Kong dollar is pegged to the US dollar.