Hong Kong residents are one step closer to experiencing the many applications of stablecoins, from local payments to cross-border trade settlements, as a bill covering the digital currency makes its way through the Legislative Council.
proposed by the Hong Kong government Stablecoin bill Closer to becoming law, the city moves to balance financial stability and consumer protection while advancing its virtual assets agenda.
Stablecoins are digital assets issued by private entities that hold a fixed value compared to a government-issued fiat currency or other reference rate. Traditionally, it acts as a bridge for transactions involving digital assets Block chainsWhich cannot interact directly with paper currencies.
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Although it is primarily known as a tool for trading cryptocurrency assets in… Web world 3Stablecoins have the potential to expand their use in the real financial economy, according to industry experts.
One potential use could be to automate incentives, rebates, or loyalty points in digital wallets, such as Octopus software, using the programmability of stablecoins, or the ability to input rules and data into the blockchain.
For example, if a consumer has a loyalty rewards scheme, their spending can be automatically added to their loyalty program and incentives can be applied at checkout without revealing their membership details.
Stablecoins could provide access to new investment avenues such as token funds – which use blockchain for sales and redemptions – as assets under management are expected to rise to around US$600 billion in seven years from US$2 billion at the end of this year, according to Report from Aptos Labs, Boston Consulting Group and Invesco.
People sit in front of a screen displaying the Hong Kong flag ahead of the 25th anniversary of the city’s handover from Britain to China on July 1, 2022, on June 27, 2022. Photo: AFP alt=People sit in front of a screen displaying the Hong Kong flag ahead of the 25th anniversary of the city’s handover. From Britain to China on July 1, on June 27, 2022. Photograph: AFP >
“The applications for stablecoins will be numerous,” said Shawn Li, co-founder of IDA, a Hong Kong-based Web3 digital asset company. “This could be for payments, settlements, payroll, finance and related to investments. New products will emerge and transactions will be faster and instantaneous 24/7 – and at a lower cost.”
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