The Hong Kong Legislative Council has reviewed the Stablecoin Bill for the first time, and stored value facility licensed companies have participated in the sandbox

PANews reported on January 22 that according to Hong Kong media Ta Kung Pao, the relevant bill committee of the Hong Kong Legislative Council reviewed the "Stable Currency Bill" for the first time yesterday. The bill is expected to be passed and become law within a few months. Ho Siu-hong, Deputy Secretary-General of the Financial Services and the Treasury Bureau of Hong Kong, said that the issuance of Hong Kong dollar-referenced stablecoin products in Hong Kong or overseas requires a license. The licensee must maintain a robust reserve stabilization mechanism to ensure that the reserve assets of stablecoins are composed of high-quality and highly liquid assets, with a total value at least equal to the face value of the circulating fiat stablecoins at any time, and must be properly segregated and kept.

According to Peter Ho, Assistant President (Currency Management) of the Hong Kong Monetary Authority, there are currently licensed stored value facility companies participating in the sandbox to trial cross-border payments. However, Hong Kong’s stable currency is still in the sandbox testing stage, and it is hoped that the process can be accelerated.