Hong Kong Monetary Authority: To consider issuing new banknotes after the first batch of stablecoins is launched.

The Hong Kong Monetary Authority issued the first batch of two stablecoin issuer licenses last month. Eddie Yue, the Chief Executive of the Hong Kong Monetary Authority, expressed that he hopes the launch of stablecoins will proceed steadily and gradually, with the two stablecoin issuers expected to launch stablecoins in the middle of this year and by the end of this year respectively. The two stablecoins have different use cases, and the implementation of the stablecoins will be observed first to understand if the actual risks match expectations, in order to optimize the regulatory process. Eddie Yue mentioned that new licenses will only be considered after the first batch of stablecoins is launched, and even if new licenses are issued, they will be limited in number depending on how many issuers the market can accommodate and the different new risks involved. He emphasized the importance of managing market expectations. Chen Weimin, the Deputy Chief Executive of the Hong Kong Monetary Authority, stated that they have been in close contact with the two license holders since the issuance of the licenses. There is still a lot of work to be done before the stablecoins are officially launched, such as ensuring that the systems are compliant, risk management, and personnel cooperation. If there are cross-border applications involved, they need to obtain local permits. Some aspects also involve control measures that need to be independently verified by third parties.