Hong Kong's Stablecoin Ordinance has created opportunities for non-USD stablecoin issuance, allowing the RMB to compete in the new international monetary order. Leveraging Hong Kong's financial strengths, the city should prioritize launching an offshore RMB stablecoin.
The Dominance of Dollar Stablecoins
Currently, dollar-pegged stablecoins hold ~99% market share, with USDT and USDC dominating. SWIFT data shows dollar payments account for only 40% in traditional finance—highlighting crypto's disproportionate dollarization.
For non-US economies, dollar stablecoins risk:
- Currency substitution effects
- Local currency depreciation pressures
- Inflationary risks
This necessitates alternatives like RMB stablecoins to reshape monetary dynamics.
RMB's Growing Cross-Border Role
Key developments:
- Chinese出海企业 driving RMB circulation
- HKEX's dual-currency (HKD-CNY) listing model expanding offshore RMB use
- March 2025 data: Cross-border RMB receipts/payments hit record ¥2.7tn/¥2.5tn
- Over 50% of Chinese firms' cross-border transactions settled in RMB ($724.9bn)
Meanwhile, dollar reserve status declines post-Trump tariffs. OMFIF surveys show:
- 13% central banks plan RMB accumulation (2nd after euro)
- Dollar demand dropped to 7th position
Hong Kong's Strategic Advantages
1. Regulatory Infrastructure
- Operational sandbox for stablecoin testing (since July 2024)
- Stablecoin Ordinance effective August 2025
- Provides legal certainty for issuance/transactions
2. Market Foundations
- CNH deposits: ¥1.8tn total (April 2025)
- Hong Kong holds ¥1tn (58% offshore share)
- SWIFT offshore RMB payments: >80% (vs. 70% in 2022)
3. Competitive Differentiation
As HKD functions like a "chain-linked dollar stablecoin," developing USD/HKD stablecoins offers limited advantage against Singapore/Japan/UAE. Offshore RMB stablecoins would:
- Enhance Hong Kong's uniqueness
- Strengthen international financial competitiveness
👉 Why offshore RMB stablecoins could redefine digital finance
FAQ Section
Q: How would RMB stablecoins differ from existing dollar stablecoins?
A: They'd provide direct RMB exposure, reducing dollar dependency in crypto transactions while aligning with China's cross-border trade flows.
Q: What risks might offshore RMB stablecoins address?
A: They could mitigate currency mismatch risks for Asia-Pacific trade and offer non-USD settlement options amid geopolitical uncertainties.
Q: Will Hong Kong's stablecoin sandbox accelerate innovation?
A: Yes, controlled testing allows iterative development while ensuring systemic risk management—a model other jurisdictions may follow.
Q: How might this impact Hong Kong's fintech ecosystem?
A: Positioning as the offshore RMB stablecoin hub could attract blockchain developers, institutional investors, and trade finance platforms.