Hong Kong Financial Secretary: Licensed Stablecoin Issuers Allowed to Choose Different Fiat Currencies as Peg

Hong Kong Financial Secretary Paul Chan Mo-po published an essay titled "Accelerating Progress and Sailing Steadily Forward," in which he pointed out that the development of digital assets has driven related business for financial institutions. Last year, the total transaction volume of digital assets and related products at local banks in Hong Kong reached HKD 17.2 billion, and by the end of last year, the total value of digital assets under bank custody had reached HKD 5.1 billion.

The previously proposed "Stablecoin Regulation" has already been passed by the Legislative Council. Hong Kong is prudently advancing the development of stablecoins, providing a new paradigm for the global stablecoin market. This also demonstrates the firewall and pilot zone functions under the "one country, two systems" framework, offering experience and reference for the country's financial development. For example, Hong Kong has adopted a more open approach, allowing licensed issuers to choose different fiat currencies as the anchor for issuing stablecoins. This is conducive to attracting more institutions from around the world to issue stablecoins in Hong Kong based on actual application scenarios, which will significantly enhance the liquidity of related activities and the competitiveness of Hong Kong's market.