Web3 experts Wang Yang and Wen Yizhou are advocating for the creation of a stablecoin endorsed by the Hong Kong government, asserting that it holds the potential to emerge as a global currency and pose a challenge to the supremacy of the U.S. dollar in specific contexts. In their latest analytical piece, Yang and Yizhou underscore the critical importance of Hong Kong’s swift action, emphasizing that the envisioned stablecoin’s success hinges on seizing the “window of opportunity” before it closes.
The proposition for Hong Kong to launch a stablecoin, backed by its native currency, the Hong Kong dollar, has been urged in the light of advancements in real-world assets (RWAs) tokenization and the stablecoin aspirations of influential entities. Yang and Yizhou, affiliated with the Hong Kong Web3.0 Association, advocate that the potential issuance of the Hong Kong stablecoin aligns with these global trends.
As per their analysis, the Hong Kong stablecoin, when realized, could transcend its role to become an international currency and exert pressure on the U.S. dollar’s dominance in specific spheres. However, Yang and Yizhou stress the urgency for Hong Kong to capitalize on the prevailing circumstances and execute its stablecoin launch within a limited time frame.
The authors emphasize, “We have a narrow window of opportunity to truly transform Hong Kong into a major international hub for Web3. We anticipate that this window of opportunity will remain open for no more than a year.”
Crucially, the experts assert that Hong Kong could maintain a leading position even amidst a growing number of stablecoins if it takes the lead in issuance. They contend that the benefits of real-world asset tokenization, including heightened transaction transparency and increased liquidity, can substantially enhance traditional financial markets’ efficiency.
While Hong Kong is well-positioned to excel in the realm of RWA tokenization, Yang and Yizhou caution that seizing this potential requires timely execution. Delays in launching the stablecoin, they argue, could jeopardize Hong Kong’s competitive edge against U.S.-based counterparts. The stablecoin, they posit, not only symbolizes a currency innovation but also a strategic move that could bolster Hong Kong’s standing in the evolving landscape of digital economies.
