A recent study published by Amun researcher, Eliézer Ndinga, shows that USD-pegged stablecoins are being leveraged in Hong Kong as “vehicles for capital control flight.” The report shows how individuals from mainland China, Singapore, and Hong Kong are moving their capital out of control by using these dollar-pegged blockchain tokens.
Last week on June 9, 2020, it marked the one year anniversary of the Hong Kong protests that were invoked by China’s extradition law. Almost immediately after the law was introduced, Hong Kong’s citizenry took to the streets in an attempt to claim the country’s true sovereignty. For over 12-months there has been civil unrest and demonstrations in the streets.
The blockchain ecosystem that emerged in China has helped Hong Kong residents flee the grasp of China’s totalitarian controls. Not only has blockchain helped individuals from Hong Kong, but also residents in Singapore and those who live within the borders of mainland China as well.
“Although as an inherently digital, censorship-resistant, and neutral asset, Bitcoin has not been the first cryptoasset of choice to flee renminbi-denominated assets due to market volatility,” explain’s Eliézer Ndinga’s report.
“USD-pegged stablecoins have ended up being just as attractive assets for those seeking to avoid losing large portions of their wealth due to price fluctuations over the short and medium terms. As a matter of fact, QCP Capital a Singapore-based crypto-asset trading firm has witnessed Hong-Kong-based investors fleeing to Singapore and trading stablecoins, predominantly Tether, in an attempt to preserve their wealth.” Amun’s report adds:
According to QCP, 80% of capital has poured into stablecoins while the remaining 20% has gone into Bitcoin.
Eliézer Ndinga stresses that data and information about the use of stablecoins is not “publicly available as much of
