Deputy Chief Executive of Hong Kong’s Monetary Authority: Stablecoin issuers must obtain approval from mainland regulatory authorities to launch RMB-denominated stablecoins.

According to a report by the Hong Kong Wen Wei Po, Norman Chan, Deputy Chief Executive of the Hong Kong Monetary Authority (HKMA), stated that stablecoin issuers’ choice of currency for issuance primarily depends on the applicants’ own preferences. While the first stablecoin to be launched will be pegged to the Hong Kong dollar, issuing stablecoins pegged to other currencies—including the renminbi—is permitted under Hong Kong’s regulatory framework. However, applicants must also obtain approval from mainland Chinese regulatory authorities. Regarding when the second batch of stablecoin issuer licenses will be issued, Chan said there is currently no official timeline, though the HKMA continues to engage in discussions with prospective applicants. It is reported that HSBC’s stablecoin will be integrated into both the PayMe and HSBC HK mobile apps, supporting real-time peer-to-peer (P2P) transfers as well as peer-to-merchant (P2M) services.