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New HKD Stablecoin to Challenge USDT & USD: Hong Kong Univ. VP Backs Idea

• The Vice President of the Hong Kong University of Science and Technology is proposing to introduce a stablecoin denoted as HKDG, backed by the substantial foreign exchange reserves amounting to $430 billion.
• The idea behind this proposal is to enhance liquidity in Hong Kong, rejuvenate its financial landscape, and facilitate crucial objectives like government investments and national developmental strategies.
• This concept also aims to challenge the status of USDT, a privately-issued stablecoin, and even the USD, the world’s largest reserve currency.

Introduction

The Vice President of the Hong Kong University of Science and Technology is once more supporting the idea of introducing a stablecoin tied to the Hong Kong Dollar (HKD) to challenge the status of USDT, a privately-issued stablecoin, and even the USD, the world’s largest reserve currency.

Proposal for HKD Stablecoin

Rooting for a HKD stablecoin Ta Kung Pao, a local news source in Hong Kong references an earlier article titled “Hong Kong’s University of Science and Technology Proposes HKD Stablecoin Backed by Foreign Exchange Reserves.” The proposal suggests introducing a stablecoin denoted as HKDG which would be backed by substantial foreign exchange reservesamounting to $430 billion. This idea aims to enhance liquidity in Hong Kong, rejuvenate its financial landscape, and facilitate crucial objectives like government investments and national developmental strategies. Additionally, this concept also aims to challenge the status of USDT, a privately-issued stablecoin, and even US dollar as well.

Trustworthiness & International Recognition

Unlike some other private issued stablecoins such as USDT or USDC which have experienced credibility issues due their private nature; this proposed coin will provide trustworthiness because it will be backed up by government’s foreign exchange reserves. Additionally embracing RWA tokenization could significantly enhance its potential to become an international currency potentially challenging dominance of US Dollar in certain instances too.

Hong Kong Aiming To Become Crypto Hub

The push for this proposal comes when city state is aiming itself towards becoming crypto hub; with Saudi Arabia’s Central Bank discussing tokenizations with Monetary Authority in July followed by approval granted for HashKey crypto exchange in early August .

Conclusion

Despite this proposal there has been no official response from Government at this point but if approved it could significantly enhance global recognition while also providing trustworthiness with backing from government’s foreign exchange reserves .