HSBC: Hong Kong may have RMB stablecoin in the future, with some large central enterprises actively exploring stablecoin applications

According to reports from the Hong Kong Economic Daily, Liu Jing, Chief Economist for Greater China at HSBC Global Investment Research, stated that PBOC Governor Pan Gongsheng mentioned the establishment of an international operation center for digital RMB at the Lujiazui Forum in June, while some large central enterprises are actively exploring stablecoin applications. Chinese enterprises often face local currency volatility and lack hedging tools when investing in Belt and Road emerging markets, which may lead these enterprises to explore issuing their own RMB stablecoins to facilitate investments in emerging markets.

Liu Jing pointed out that when multiple Chinese enterprises issue RMB stablecoins, digital RMB could become an intermediary connecting various RMB stablecoins, which would help expand the international use of RMB.

She further stated that Hong Kong, with its cooperation foundation with the mainland in the field of digital RMB and the newly introduced stablecoin legislation, may become the first place to issue RMB stablecoins. If Hong Kong introduces RMB stablecoins in the future, they are expected to be primarily used in corporate payment scenarios, especially in cross-border payments.

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