In addressing the progression of stablecoins, Hong Hao remarked that it is not unprecedented for prominent internet giants like Tencent and Alibaba to secure licenses for stablecoin issuance, though the majority of players are still in the nascent stages of planning. He highlighted that the majority of stablecoins issued in Hong Kong are denominated in Hong Kong dollars, which are pegged to the US dollar and supported by Hong Kong's substantial foreign exchange reserves, potentially offering enhanced stability compared to US-based stablecoins. Hong Hao posits that the proliferation of stablecoins will stimulate demand for US Treasuries, with long-term demand contingent upon the fiscal health of the United States.

Despite the current modest size of the stablecoin market, which stands at $250 billion, Hong Hao forecasts a rapid expansion, anticipating it to surpass the trillion-dollar mark in the future. Moreover, stablecoins present advantages such as low transaction costs and high efficiency, which hold positive implications for China while simultaneously posing regulatory challenges.