The Financial Times reported that companies showed interest in Hong Kong’s pilot stablecoin program and tokenized asset products, but were told to halt their plans due to concerns that privately issued currencies could challenge the central bank’s authority and the digital yuan (e-CNY).
Beijing’s intervention reflects broader regulatory concerns about the systemic risks of stablecoins and monetary sovereignty. Former central bank officials have called for careful assessment of tokenized transactions and their potential misuse for speculation or fraud. Hong Kong’s regulator positioned the city as a testing ground for stablecoin licensing, but the caution of mainland authorities has slowed momentum from firms and brokers considering participation.
