Hong Kong: Stablecoins Poised to Transform Capital Markets and Drive Issuers to Expand Use Cases Across Various Scenarios

According to a report by Jinse Finance, Hong Kong Financial Secretary Paul Chan stated that fintech holds tremendous potential for cross-border trade applications, with the goal of addressing long-standing pain points such as slow cross-border payments and high costs, thereby better serving the real economy in the payments sector. Last week’s release of the “Digital Asset Development Policy Statement 2.0” identified “promoting application scenarios and cross-sector collaboration” as one of its four pillars. The statement noted that stablecoins offer a cost-effective alternative outside the traditional financial system and have the potential to transform payment and capital market activities, including cross-border payments. The legislation on stablecoins will take effect on August 1 this year. The SAR government and financial regulators are committed to fostering a favorable market environment, complemented by necessary regulatory measures, to encourage issuers to expand stablecoin applications to various scenarios, helping to address real pain points faced by businesses and citizens in their daily lives.