The Central Bank of Hong Kong promises to pay special attention to the regulation of stablecoins, developing rules to protect the rights of investors.
Hong Kong central bank chief executive Eddie Yue said that in the long term, central bank digital currencies (CBDCs) and stablecoins can compete with cryptocurrencies in the efficiency and cost-effectiveness of transactions. At the same time, according to Yue, any technology carries certain risks.
As for the blockchain, the existing risks are much more difficult to avoid, since the decentralized nature of the technology requires certain resources and skills – specialists should deal with on-chain risks, and regulators, Yue explains his point of view.
For now, Hong Kong plans to focus on external risks – Yue said that the country’s central bank is not only working on anti-money laundering (AML) rules, but also a regulatory framework to protect investors of all categories. An equally important topic for the Central Bank of Hong Kong is stablecoins – the bank believes that it needs to be given special attention, since stablecoins are the most popular and are poorly regulated.
Earlier, the Hong Kong Monetary Authority (HKMA) stated that stablecoins are at risk on a par with cryptocurrencies, but they are more firmly woven into the traditional finance system, which could lead to its destabilization.
Source: Bits
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