Jeremy Allaire, the chief executive officer of Circle, the issuer of the second most liquid stablecoin, USDC, expects to see huge demand for digital dollars in emerging markets of which Hong Kong and China are central. Subsequently, this in turn could drive the demand of various digital assets, including Dogecoin, Bitcoin, Ethereum, and Cardano higher.
Typically, digital dollars like USDC and its competitor USDT are conduits by retail and institutions into the crypto market. This partly explains their significance in crypto, including roles decentralized finance (DeFi), where several products rely on USDC, USDC, and even algorithmic digital dollars like DAI.
Allaire’s confidence on Hong Kong is when Dogecoin, the most liquid meme coin perched in the top-10 by market cap, has been recovering, shaking off selling pressure in the second half of June. When writing, DOGE is trading at $0.065, up 13% from June 2023 lows. However, the coin remains within a bearish formation, slipping 40% from April 2023 highs.
Dogecoin And Cryptocurrencies Remain Under Pressure Despite Hopes in Hong Kong
The CEO’s comments follow an encouraging formation in the cryptocurrency market at the close of H1 2023. After weakness in May 2023, prices rebounded strongly from mid-June as bulls reversed losses and retested 2023 highs. With rising Bitcoin prices, the crypto market edged higher, lifting other coins, including Solana, Dogecoin, and Ethereum.
Although prices of some altcoins are now lower, DOGE prices are firm and likely to continue the trend observed in the third week of June, strengthened by fundamental actions, including unfolding events in Hong Kong. According to Allaire, Hong Kong, a special administrative zone of China, will be crucial, primarily as it seeks to establish itself as a key financial hub in finance and cryptocurrency.
While speaking at the World Economic Forum in Tianjin, China, Allaire said Circle is closely watching Hong Kong. His confidence comes when Hong Kong said it would adopt a technology-neutral approach to regulating cryptocurrencies. In this regard, approved rules will apply to all crypto assets.
Hong Kong Regulations For Crypto Trading
As part of this approach, which observers say is progressive; Hong Kong is setting itself as a cryptocurrency trading center, going by current regulations on exchanges. For instance, the Securities and Futures Commission (SFC) of Hong Kong demands that all exchanges be registered and licensed before offering services.
At the same time, it must comply with anti-money laundering (AML) and countering the financing of terrorism (CFT) regulations while ensuring it keeps all of its records, including the identities of transactors, including the amount involved.
On June 26, leaked documents showed that HSBC Hong Kong has already begun allowing Bitcoin and Ethereum exchange-traded funds (ETFs) trading of instruments listed on the Hong Kong Stock Exchange. Although nothing has been confirmed by the region’s largest bank, their decision gives them an edge against institutions in the United States.
Despite several applications, the Securities and Exchange Commission (SEC) has yet to approve a Bitcoin spot ETF. Recently, BlackRock submitted a filing for a Bitcoin spot ETF generating interest in crypto, lifting Bitcoin prices towards $31,000 and helping steady Dogecoin bulls.
