Hong Kong Lawmaker Suggests Turning CBDC Into Defi-based Stablecoin

A lawmaker from Hong Kong thinks that a government-backed stablecoin would provide a better opportunity of entering the world of Web3. Wu Jiezhuang, a member of the Legislative Council of the Hong Kong Special Administrative Region is a strong supporter of this idea of turning the Hong Kong digital dollar (e-HKD) into a stablecoin. This stablecoin will be government-backed rather than backed by a private agency.  

He thinks that this option can address the potential risks associated with virtual assets and Web3, according to an interview given by Wu. He referred to the recent downfall of stablecoin projects in 2022, which had a severe domino effect on the cryptocurrency market.  He further stated that this stablecoin will be connected to DeFi for better access.