Caixin: Stablecoin Craze Cools Down, Hong Kong May Limit First Batch of Stablecoin Licenses to 3-4 Companies

BlockBeats News, August 2nd. According to Caixin report, from June to July this year, discussions on stablecoins across the Taiwan Strait once reached a boiling point and then cooled down. Hong Kong may narrow the scope of the first batch of stablecoin licenses to three to four entities. The Hong Kong Monetary Authority realized in its communication with the People's Bank of China that, under the regulatory memorandum of understanding framework, the main regulatory responsibilities and risks are concentrated on the Hong Kong Monetary Authority.

Several mainland Chinese banks with branches in Hong Kong and mainland Chinese securities firms with branches in Hong Kong are eager to participate in Hong Kong's compliant stablecoin business. These include Bank of China Hong Kong, Bank of Communications Hong Kong, China Construction Bank (Asia), Industrial and Commercial Bank of China (Asia), Guotai Junan International, among others, involving stablecoin issuance, custody, and other businesses.

Furthermore, an insider, in an interview related to stablecoins, stated that China currently does not have a globally influential public chain. Another insider suggested that a national-level core public chain should be led by a central state-owned enterprise, while industry-level public chain development could be open to market competition.