Asia's Regulators Unleash Stablecoin Wave Across Region
Regulators across Asia are urging banks to prepare for stablecoins as legislation is set to be passed in several countries. According to John Cho, chief stablecoin officer at Kaia DLT Foundation, Hong Kong has already written a dedicated stablecoin ordinance into law. Cho noted that Singapore, Japan, and South Korea are also moving quickly to pass similar legislation.
'There's a lot of lawmakers and regulators reaching out directly to banks in Asia, telling them to be ready when the legislation is written,' Cho said.
Cho stated that the pressure to adopt stablecoins is driven by the potential cost savings and efficiencies they can bring. However, he noted that many banks are adopting stablecoins not because they love them, but because they have to.
In Japan, Circle's USDC is currently the only global dollar stablecoin approved, while Tether is building jurisdiction-specific versions. Cho believes that the winners in the stablecoin market will not all be dollars, as technology can help facilitate adoption of local currencies.