Hong Kong Special Administrative Region Legislative Council Member Wu Jiezhuang proposed converting the Hong Kong CBDC into a DeFi-backed stablecoin.
One of the most important topics in the crypto industry is CBDCs. Cryptocurrencies, which are in a constant change and innovation, also open the doors of new integrations. The fact that countries are now getting involved has made regulations and CBDCs the main agenda item. Many countries have made progress in CBDC work. In particular, Turkey has reached an important position with its success in Digital TL. Finally, Hong Kong official Wu Jiezhuang proposed converting Hong Kong’s CBDC into a DeFi-backed stablecoin.
Hong Kong Official Suggests CBDC Be A DeFi-Backed Stablecoin
Hong Kong officials are working on new models for the central bank digital currency (CBDC). Wu Jiezhuang, one of the officials, gave a message for the government-backed stablecoin with a country behind it. Jiezhuang proposed converting Hong Kong CBDC to stablecoin.
Jiezhuang believes that converting the Hong Kong digital dollar (e-HKD) to stablecoin could lead to better adoption of technologies like Web3.
In addition, Jiezhuang also talked about several stablecoins that have been a bombshell in the past. Talking about collapsing stablecoins, Jiezhuang said, “All of the stablecoins currently on the market are issued by some private companies and are not subject to government scrutiny.”
The Hong Kong official thinks that with this transformation, better access to the Web3 ecosystem can be achieved. The official stated that thanks to the stablecoin integration with the CBDC, it can also be connected to the use of DeFi.