Many institutions are preparing for Hong Kong stablecoin licenses, and the industry says not to exaggerate the impact of stablecoins

PANews reported on July 8 that according to China Business News, the reporter learned from industry insiders that Hong Kong's stablecoin licenses are relatively scarce and in high demand, and it is estimated that there will be only single-digit licenses. However, in addition to JD.com, Standard Chartered, Yuanbi, etc. that have already been officially announced, there are more than 40 companies preparing to submit applications. Law firms have reported that there are dozens of intended applications, and they are currently in the consultation or preparation stage. The competition is very fierce. The applicants are basically China's largest financial institutions and Internet companies, while some small companies that intend to apply have little hope.

Against this backdrop, expectations for stablecoins to reconstruct the global monetary system are rising. Qiao Yide, vice president and secretary of the Shanghai Development Research Foundation, told the First Financial reporter that the efficiency of cross-border payments that can be improved by stablecoins may not be as high as everyone expected. Some studies have pointed out that the actual cost may be close to 1%, rather than the extremely low level advertised. At the same time, stablecoins are anchored on sovereign currencies, which are actually an extension and diffusion of the functions of legal tender and cannot subvert the system on which they depend for survival. Although the current market is in full swing and major institutions are scrambling to enter the market, there is even a view that stablecoins will reconstruct and subvert the international monetary system. But in the eyes of industry insiders, this is undoubtedly an exaggeration of the impact of stablecoins.