【FOFA In-Depth Observation】Beyond Virtual : Deconstructing Hong Kong's Stablecoin Macro Strategy and Future Blueprint
- FOFA
- Jul 5
- 4 min read
In today’s era where digital assets are sweeping across the globe, stablecoins have evolved far beyond being just a medium of exchange within the crypto world. They have become a pivotal piece in the financial strategies of various nations. As an international financial center, Hong Kong is actively embracing this transformation. To analyze the opportunities and challenges behind this shift, FOFA (Family Office Fintech Association), together with a university research team, recently held an in-depth dialogue. The discussion brought together seasoned financial advisors, asset management professionals, and academic experts to explore the development prospects of stablecoins in Hong Kong and the Asia-Pacific region.
This article aims to go beyond the surface-level understanding of stablecoins as "virtual currencies or payment tools" and, from the dimensions of macro policies, industry applications, and talent cultivation, reveal the core strategies behind Hong Kong's stablecoin policies. It also seeks to map out practical pathways for entrepreneurs and investors interested in the future of digital finance.
Core Insights : Stablecoins Are Not Just Fintech Products but the Future of Strategy and Currency
The central argument of the discussion emphasized that Hong Kong's promotion of stablecoins is essentially a top-down macroeconomic and geopolitical initiative led by the government. Its strategic significance far surpasses the scope of technological innovation.
Shifting Power Centers and Currency Policy Innovation
Traditionally, the authority to issue currency has been shared between central banks and commercial banking systems. However, the emergence of digital assets, particularly stablecoins, is reshaping this dynamic, bringing currency issuance back under central control. By issuing a Hong Kong dollar stablecoin, the government can effectively expand the supply of broad money (M1, M2) without directly increasing the monetary base (M0). This grants the government unprecedented capabilities to fine-tune the economy by channeling funds into specific areas such as green infrastructure, social welfare, or elderly healthcare, achieving "stimulating the economy while controlling inflation" with precision.
Hong Kong’s Strategic Positioning: A Testing Ground for RMB Internationalization
As the world’s largest offshore RMB center, Hong Kong is an ideal location for implementing this monetary experiment. Its strategic goal is to use the Hong Kong dollar stablecoin as a bridge and vehicle to promote the internationalization of the RMB in a controlled-risk environment. This move not only serves as a defensive strategy to consolidate Hong Kong's status as a financial hub but also represents a long-term strategic layout to challenge the existing US dollar system. Compared to the central bank digital currency (CBDC), which has not yet been fully adopted on the mainland, a stablecoin based on the Hong Kong dollar might be more appealing to both international and domestic users. It has the potential to break down financial barriers within the Greater Bay Area.
Practical Challenges: The “Temperature Gap” Between Individual Users and SMEs
Despite the grand macro blueprint, stablecoin applications at the micro level still face a gap between “ideals and reality.”
For individual users: In the short term, the experience stablecoins bring is not significantly different from existing electronic payment systems (e.g., the Faster Payment System, FPS). However, their true potential lies in becoming a new option for personal asset allocation. In the future, stablecoins or related digital assets could occupy 5% to 20% of personal investment portfolios as an emerging financial product for risk diversification.
For SMEs: The biggest challenges faced by small and medium-sized enterprises (SMEs) are operational difficulties and cost pressures, rather than payment efficiency. At this stage, stablecoins cannot directly address the urgent issues of business operations. To empower SMEs on a large scale, stablecoin applications require more mature use cases and lower compliance thresholds.
The Road to Adoption: Three Key Barriers to Overcome
To turn a grand strategy into widespread market consensus and application, Hong Kong must confront and overcome the following three major challenges:
Cognitive and Psychological Barriers: The biggest resistance stems from "fear" and "misunderstanding". Decision-makers in traditional finance hesitate due to unfamiliarity, entrepreneurs often view stablecoins as intangible, and public awareness remains low. Interestingly, some participants noted that overthinking potential risks can paradoxically become a barrier to innovation.
Talent and Education Gaps: Hong Kong severely lacks versatile talent capable of navigating finance, technology, and business simultaneously. The traditional specialized education model can no longer meet future needs. Amid the wave of AI disruption, Hong Kong’s knowledge-based white-collar workforce faces immense pressure to transform. Future organizations will become more decentralized and require "craftsmen" with entrepreneurial spirit and problem-solving skills, rather than employees who simply follow instructions.
High Compliance Costs: Currently, the highest barriers in the digital asset space stem from compliance costs. While these ensure market stability, they also inadvertently block many promising newcomers from entering the field.
Future Outlook: Emerging Opportunities and the Ultimate Test of Success
Despite significant challenges, the era of digital assets is irreversible, and new opportunities are emerging.
Birth of New Industries: A new "fintech consulting" industry, dedicated to helping businesses and individuals navigate the digital era, is expected to emerge.
Large Enterprises Taking the Lead: The first large-scale adopters of stablecoins are expected to be companies with massive transaction volumes, such as Xiaomi and Ant Group. By bypassing traditional payment networks (e.g., Visa, MasterCard), they could significantly reduce transaction costs, creating a demonstration effect.
Government-Led Trust Building: The successful adoption of stablecoins will likely be tied to government-led large-scale projects (e.g., green bonds, infrastructure financing) to establish public trust and usage scenarios.
However, the discussion ultimately returned to a fundamental business question: issuing tokens is easy, but the challenge lies in whether the issuer has the ability to sustain profitability and create value. For both governments and businesses, only projects with strong fundamentals and the ability to generate real value can earn the market’s trust in the long run.
Conclusion and Invitation
Hong Kong's stablecoin journey is a carefully thought-out macro strategy. Its success depends not only on technological advancement or regulatory clarity but also on whether we can collectively overcome psychological fears, nurture future-oriented talent, and tightly integrate digital assets with the real economy's value.
FOFA is committed to promoting the sustainable development of digital finance in Hong Kong. We firmly believe that the road ahead requires cross-sector collaboration and collective wisdom. We sincerely invite industry leaders to join us in exploring and building a more robust and vibrant digital financial future. Together, we can help Hong Kong and international entrepreneurs successfully navigate the digital transformation journey.
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