The national security law allows Chinese government to confiscate property of inhabitants and organizations suspected of breaking the new security law. Data show that Hong Kong inhabitants transfer their financial means into stablecoins in huge amounts to resist impacts of the new legislation. Transferring property to crypto currency is a way of keeping their assets independent of Chinese authorities.
Transition to stablecoins doubled during June and rose even higher in the end of June, when its average daily volume of Hong Kong dollar transferred to stablecoins doubled.
According to analysts, stablecoins are more often used also by citizens of mainland China, which use cryptocurrency for shifting property abroad. The reason is that the Chinese need a permission from China’s Central bank when transferring more than the equivalent of 50,000 dollar per year. When companies use stablecoins, they avoid the supervision. The volume of transferred money into stablecoins may keep growing in this part of the world.
