J.P. Morgan: Hong Kong Stablecoin Law Paves Way for Offshore RMB Stablecoin

BlockBeats News, June 21st, Morgan Stanley's latest research report pointed out that the Hong Kong Stablecoin Bill has essentially paved the first legal path for offshore RMB stablecoins. With the support of around 1 trillion RMB in deep offshore liquidity in Hong Kong, offshore RMB stablecoins will validate the practical use case of cross-border settlement while avoiding violation of mainland capital controls or impacting onshore financial stability. The development of RMB stablecoins should be seen as a potential part of the cross-border RMB settlement infrastructure, with related infrastructure including RMB swap agreements, CIPS (Cross-border Interbank Payment System for RMB), and a global RMB clearing service network. (Ming Pao)