Hong Kong’s Stablecoin Drive May Pave Way for Digital Yuan, Undermining US Dollar

The Chinese communist regime intends to integrate a stablecoin pegged to the yuan into Hong Kong’s international capital markets.

A currency sign is seen in Hong Kong on Aug. 11, 2015. Philippe Lopez/AFP via Getty Images

News Analysis

The push by Hong Kong’s Legislative Council to authorize a diverse range of fiat-referenced stablecoins is raising concerns about the stability of its long-standing Linked Exchange Rate System (LERS) pegged to the U.S. dollar.