Is a RMB-Pegged Stablecoin on the Horizon? Hong Kong Treasury Chief Says It’s Possible

TradingKey – Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, has suggested that a stablecoin pegged to the Chinese yuan (RMB) is not off the table — provided it aligns with national policy.

As of June 20, the crypto market has seen stablecoins pegged to major fiat currencies like the U.S. dollar, euro, British pound, Japanese yen, and Swiss franc. However, no RMB-pegged stablecoin has been launched to date. The recent passage of Hong Kong’s Stablecoin Ordinance, set to take effect on August 1, has increased speculation that a yuan-backed stablecoin could soon emerge.

In a recent interview, Hui stated that Hong Kong’s legal framework does not prohibit stablecoins from being pegged to the RMB, as the law allows issuers to anchor their tokens to various fiat currencies. However, he emphasized that any RMB-pegged stablecoin must be evaluated in the context of China’s exchange rate and monetary policy, requiring a careful assessment of both risks and benefits.

Separately, People’s Bank of China Governor Pan Gongsheng recently addressed stablecoins for the first time at a financial forum, noting that emerging technologies like blockchain and distributed ledgers are reshaping traditional payment systems, enabling instant settlement and streamlining cross-border transactions. However, he also warned that these innovations pose significant regulatory challenges.