Michaela
The Legislative Council of Hong Kong has approved the Stablecoin Bill in its third reading, paving the way for mаjor institutions to apply to the Hong Kong Monetary Authority for licenses to issue stablecoins by year-end.
On May 21, Legislative Council member Johnny Ng Kit-Chong noted in an X post that the bill’s approval represents a key milestone in advancing Web3 globally and positions the country to emerge as a leading international hub for Web3 innovation.
Ng emphasized that Hong Kong’s stablecoins arе fully backed by fiat currency reserves and encouraged global businesses and institutions interested in issuing stablecoins to submit applications in the country. “I am also happy to facilitate connections and collaborate with all stakeholders to advance the development of Web3 in Asia and globally, with Hong Kong at the center,” Ng wrote.
Additionally, the council member noted that the approval of the stablecoin bill represents only the beginning of Hong Kong’s efforts to develop a robust Web3 infrastructure. He expressed hopes that future initiatives will focus on strengthening key areas essential to supporting the sector’s growth.
Ng emphasized the importance of building practical use cases, describing it as the “most crucial step” in advancing stablecoin adoption. He pointed out areas such as physical retail, cross-border commerce, and peer-to-peer paymеnts as promising avenues where real-world applications could unlock significant value and drive broader integration of stablecoins.
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“I encourage businesses across traditional and physical industries to explоre and embrace stablecoins, as they represent a major financial innovation,” Ng wrote.
Additionally, Ng noted the need to bolster market stability as a second key priority, suggesting that sharing interest earnings with stablecoin holders could be an effective approach. He argued that offering returns would enhance stablecoins’ competitiveness, attract wider adoption, and increase their market share—laying the groundwork for more sustainable, long-term growth in the sector.
Hong Kong is among several jurisdictions that have recently drawn international attention for their regulatory developments surrounding stablecoins. Lee Jae-myung, the Democratic Party of Korea’s presidential frontrunner, put forward a proposal to establish a stablecoin market backed by the South Korean won. He positions the move as a strategic approach tо reduce capital flight while reinforcing the nation’s digital financial infrastructure.
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Lee emphasized the value of a stablecoin tied to the South Korean won, suggesting it could serve as a tool to boost the country’s financial stability. By minimizing reliance on foreign currencies and helping retain capital within South Korea, he believes the initiative could contribute to greater economic sovereignty and monetary security.
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
