Many institutions are preparing for the Hong Kong stablecoin license. Industry insiders warn against exaggerating the impact of stablecoins.

According to information obtained from industry insiders by reporters, stablecoin licenses in Hong Kong are relatively scarce and in high demand. It is estimated that there are only single-digit licenses available, but currently, aside from those already officially announced such as JD, Standard Chartered, and Circle, there are over 40 companies preparing to submit applications. Law firms have received feedback from dozens of companies expressing interest in applying, and they are currently in the consultation or preparation stage. The competition is fierce, with most applying institutions being China's largest financial institutions and internet companies, while smaller companies hoping to apply have slim chances. Against this background, expectations are rising for stablecoins to reshape the global monetary system. Qiao Yide, Vice President and Secretary of the Shanghai Development Research Foundation, told First Financial journalists that the efficiency in cross-border payments that stablecoins can offer may not be as high as everyone expects. Some studies suggest that the actual costs may be close to 1%, rather than the advertised extremely low levels. Additionally, stablecoins are anchored to sovereign currencies, serving as an extension and diffusion of fiat currency functions, and cannot overturn the system on which they depend for survival. Despite the current market excitement and major institutions eagerly entering the fray, even with the emergence of the opinion that stablecoins will restructure and disrupt the international monetary system, industry insiders believe this is undoubtedly an overestimation of stablecoins' impact.