Banco de China jumps in the midst of rumors of Stablecoin license plans

The shares that quote in Hong Kong of the Bank of China increased 6.7% on Monday, quoting HKD $ 37.58, after local media reports suggested that the Bank’s Hong Kong unit is preparing to request a Stablecoin Issuer license.

He Economic Magazine of Hong Kong He informed that the Bank of the State Bank of China had formed a dedicated working group to explore the broadcast of Stablecoin.

The Bank of China did not respond to a request for comments, but in the results of last week, I call investors that the applications of digital assets and their risk management were investigating.

Hong Kong introduced his Stablecoin license regime on August 1, which requires the issuing issues to obtain the approval of Hong Kong’s monetary authority (HKMA). The framework imposes strict requirements for reservation management, reimbursement guarantees, client’s background segregation, anti-launch of money, dissemination and operator research. The rules occurred shortly after the United States approved its first federal law of Stablecoin, the genius law.

The city regime has already attracted the interest of the main financial institutions, including Standard Chartered.

Chinese technology giants JD.com and Ant Financial have also announced plans to find licenses abroad for services aimed at their international businesses, which could include the application in Hong Kong. The founder of JD, Richard Liu, said in June that the company aims to use Stablecoins to reduce cross -border payment costs, first for company to company transfers before expanding to consumers.

Vincent Chok, CEO of First Digital based in Hong Kong headquarters, he said Decipher The attractiveness of Stablecoins lies in efficiency. “Blockchain technology reduces the liquidation times and ignores the traditional intermediate tariffs of the banks,” he said, adding that the opportunity is “especially pronounced in emerging markets, where the growing adoption of Stablecoin provides users with coverage against monetary volatility.”

While the cost advantage varies according to the corridor and the type of transaction, Chok pointed out that adoption is accelerating as the regulation provides clarity. “The current trajectory suggests exponential growth in the next 2-5 years,” he added.

Even so, Hong Kong regulators have urged moderation. In mid -August, the Securities and Future Commission (SFC) and HKMA jointly warned that investors that market changes linked to licenses rumors can be misleading.

“These movements seem to follow corporate ads, news reports, publications in social networks or speculation regarding the plans to apply,” they said. “Given the significant uncertainties surrounding the results of these preliminary plans or applications, the abrupt market movements … highlight the need to remain vigilant in these frantic situations.”