摘要：The move also reflects China's broader strategic ambition to strengthen its financial heft in the digital age, the experts said. T

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Hong Kong's introduction of the world's first dedicated legislation on fiat-referenced stablecoins — a type of cryptocurrency — marks a significant milestone in the city's push to solidify its status as a global financial hub that pioneers in virtual asset regulation, financial experts said.

The move also reflects China's broader strategic ambition to strengthen its financial heft in the digital age, the experts said. They added that the legislation may open up new possibilities for cross-border use of the digital yuan, or e-CNY, while providing a reference for any potential adoption of stablecoins in other parts of the country.

A stablecoin is a digital currency that is built on blockchain technology and pegged to fiat currencies or other assets at a designated exchange rate to maintain a Stable value. Fiat-referenced stablecoins are backed by fiat currencies, which are government-issued money not backed by a physical asset such as gold.

In late May, the Legislative Council of the Hong Kong SAR passed the Stablecoins Bill, establishing a licensing regime for fiat-referenced stablecoins issuers. The bill became law on May 30 when it was gazetted as the Stablecoins Ordinance.

While the commencement date of the ordinance is currently unknown, the Hong Kong Monetary Authority said it expects the ordinance to take effect this year.

"Hong Kong's Stablecoins Ordinance marks the world's first official legislation targeting stablecoins, setting a policy benchmark globally," said Song Ke, executive vice-president of Renmin University of China's Shenzhen Research Institute.

The legislation opens new possibilities for the cross-border use of the e-CNY, representing a positive factory for the internationalization of the Chinese currency. Such synergy may allow China to explore innovations for cross-border payments, improve efficiency and reduce reliance on SWIFT, the world's leading system of secure financial messaging services, Song added.

Stablecoins have drawn regulatory attention globally. On May 19, the United States Senate advanced its own bill to regulate stablecoins, called the GENIUS Act.

Circle Internet, the issuer of regulated stablecoin USDC, may raise USD1.1 billion through an IPO on the NYSE, bringing its market value to USD6.8 billion.

Yuan Shuai, deputy secretary-general of Z-Park Internet of Things Industry Alliance, said Hong Kong's Stablecoins Ordinance has significant importance for the global financial hub amid intensifying global competition over stablecoin leadership.

"Hong Kong's more open regulatory environment for the crypto industry will present opportunities for the subsidiaries of mainland banks to gain experience in the market," Moody's Investors Service said in its research report.

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