Hong Kong Urged to Become Global Hub for Stablecoin Issuance

Calls are growing for Hong Kong to establish itself as a world leader in stablecoin issuance. The proposal comes from Yao Zhisheng, a member of the CPPCC National Committee. He argued that the city is uniquely positioned to build a global hub for digital finance. In his recent article, published in Ta Kung Pao, he stressed that stablecoins can combine the transparency of blockchain with the price stability of traditional currencies. Yao’s suggestions arrive just weeks before Chief Executive John Lee delivers his next Policy Address on September 17. The address is expected to outline long-term strategies for the city’s economic and financial development.

Stablecoins as Growth Engine

Stablecoins, digital tokens pegged to fiat currencies, have become a central part of global finance discussions. Supporters see them as a bridge between traditional banking and digital assets. For Hong Kong, the opportunity lies in leveraging its established role as an offshore RMB hub. Additionally, its unique position under the “One Country, Two Systems” framework attracts both local and international players. The city attracts both local firms and international players looking for a bridge into China’s market. Yao noted that stablecoins could strengthen Hong Kong’s financial ecosystem while also supporting China’s bigger economic goals. The RMB is moving toward greater international use. Hong Kong could become a key testing ground for new models of digital currency and settlement.

Broader Vision for Development

The stablecoin proposal is part of a wider set of recommendations Yao put forward. He urged the government to align Hong Kong’s growth with China’s upcoming 15th Five-Year Plan. That will guide national development for the next half-decade. He also called for policies to attract more global talent and support a growing population. Framing these issues as essential for long-term competitiveness. “Hong Kong is not a bystander but a participant in the national plan,” Yao wrote. He emphasized that the city should not only seize opportunities but help shape the direction of digital finance in the region.

A Push Toward Digital Finance Leadership

Financial analysts note that Hong Kong’s ambition to become a “digital finance hub” aligns with recent policy shifts. The government has already begun developing rules for virtual assets and pilot programs for tokenization. Positioning the city as a stablecoin issuance center could accelerate these efforts and set Hong Kong apart from regional rivals. If implemented, the proposal could mark a significant step in defining Hong Kong’s financial identity for the next decade. Currently, attention turns to John Lee’s September address, where observers expect digital finance to take center stage.