Jeremy Allaire, CEO of Circle, the issuer of the stablecoin USDC, has said during an interview with SCMP that he is “under no illusions” about the resurgence of the crypto market in China, but is optimistic about Hong Kong. He has added: “The reality is that every other major financial market in the world is also embracing digital assets, and the biggest financial institutions in the world are embracing digital assets. So for Hong Kong to be relevant, it has to.” According to him, the mainland Chinese government supports Hong Kong’s Web3 initiatives. Allaire has also stressed yuan-based stablecoins could bring more benefits to the PRC than existing CBDCs. He has added: “If eventually the Chinese government wants to see the RMB used more freely in trade and commerce around the world, it may be that stablecoins are the path to do that more than the central bank digital currency.” Allaire has cited a stablecoin pegged to an offshore yuan as an example. He has also said Circle is encouraged by the Hong Kong Monetary Authority’s (HKMA) plans to regulate the sector: by 2024, the agency will introduce mandatory licensing for issuers of “stablecoins.”
