HSBC: Hong Kong may have a RMB stablecoin in the future, and some large state-owned enterprises are actively exploring the application of stablecoins

Liu Jing, Chief Economist for Greater China at HSBC Global Investment Research, noted that People's Bank of China Governor Pan Gongsheng mentioned the establishment of an international operations center for the digital RMB in his speech at the Lujiazui Forum in June. Meanwhile, some large state-owned enterprises are actively exploring the use of stablecoins. Chinese companies investing in emerging markets along the Belt and Road Initiative often face the risk of local currency fluctuations and lack hedging tools. This may lead these companies to explore issuing their own RMB stablecoins to facilitate their investments in emerging markets. Liu Jing noted that once multiple Chinese companies issue RMB stablecoins, the digital RMB could become an intermediary connecting these various stablecoins, which would help expand the international use of the RMB. She further stated that Hong Kong, with its existing cooperation with mainland China in the digital RMB field and its newly introduced stablecoin bill, could become the first launch site for a RMB stablecoin. If a RMB stablecoin emerges in Hong Kong in the future, it is expected to be primarily used in corporate payment scenarios, particularly cross-border payments. (Hong Kong Economic Times)