Stablecoin Development Gains Momentum as Gold-Linked Models Enter Research Phase
During a recent public forum on the upcoming budget, Hong Kong’s Financial Secretary John Tsang signaled a strategic shift in the city’s digital currency roadmap. He confirmed that the stablecoin regulatory framework is progressing steadily, with positive market response and a maturing oversight structure.
In response to public suggestions about linking stablecoins to gold reserves, Tsang stated that feasibility studies have already begun post the initial policy framework. He noted that gold, as a time-tested store of value, offers stability and broad international acceptance—qualities that could strengthen the credibility and resilience of digital stable assets if properly structured.
Balancing Innovation with Risk Management
- Research will focus on reserve transparency, asset custody, and volatility mitigation
- Regulators stress a cautious rollout, prioritizing system integrity and legal readiness
- Potential inclusion of independent audits and real-time reserve disclosures to build public trust
This consultation forms part of the government’s outreach ahead of the full budget release on February 25. As global competition in digital finance intensifies, Hong Kong is positioning itself to lead in responsible innovation within the fintech space.