Central Bank: Purchasing tokenized stocks with stablecoins will directly channel funds in and out of the stock market

BlockBeats News, June 21st: In a document released by CICC titled "The Potential Impact of Stablecoins on the Financial System," it was pointed out that from the perspective of currency creation, the lending behavior within the decentralized financial system has realized the creation of "quasi-money." Particularly, purchasing tokenized stock assets with stablecoins will directly channel funds into/out of the stock market. From the market sentiment perspective, cryptocurrency prices are highly volatile, impacting stock market expectations. Historically, there has been a certain correlation between the Nasdaq Index and Bitcoin prices. Assets in the stock market related to crypto assets and stablecoins, such as cryptocurrency exchanges and financial institutions, affect stock prices through changes in fundamentals.

Regarding the Hong Kong Dollar, standardizing stablecoin issuance, especially a Hong Kong Dollar stablecoin, can help enhance the HKD's influence in cross-border payments, the cryptocurrency field, and strengthen the competitiveness of the Hong Kong financial industry and the HKD internationally, consolidating Hong Kong's position as an international financial center in China.