During the Greenwich Economic Forum this week, Ashley Alder, the CEO of the Securities and Futures Commission of Hong Kong, mentioned that Bitcoin has clearly demonstrated its resilience as an alternative asset. While most central bankers and economists may argue that cryptocurrencies like Bitcoin and Ethereum have no intrinsic value, Alder stated that she does not necessarily disagree with that viewpoint, but the fact remains that Bitcoin has shown its durability as an alternative asset over the past 15 years.
However, Alder also emphasized in her speech that regulatory support for the Web3 ecosystem in Hong Kong should not be seen as an endorsement of the virtual asset class. She added that the Securities and Futures Commission of Hong Kong is also working on regulating stablecoins. Alder revealed that they are preparing a new framework to regulate stablecoins pegged to fiat currencies. Recently, the Hong Kong Monetary Authority completed a consultation on the proposed framework, which includes requiring stablecoin issuers to ensure that their reserves are fully backed by high-quality and highly liquid assets.
