Hong Kong: Stablecoins are expected to bring transformation to the capital market

ChainCatcher news, according to Jinshi Data reports, the Financial Secretary of the Hong Kong Special Administrative Region, Paul Chan, stated in a blog on the 29th that the potential of fintech in cross-border trade applications is enormous. The goal is to address long-standing pain points such as slow cross-border payment speeds and high costs, and to better serve the real economy in the payment sector. The "Digital Asset Development Policy Declaration 2.0" released last week includes "promoting application scenarios and cross-sector collaboration" as one of its four pillars, mentioning that stablecoins provide a cost-effective alternative outside the traditional financial system, with the potential to revolutionize payment and capital market activities, including cross-border payments.

The regulations for stablecoins will take effect on August 1 of this year. The SAR government and financial regulatory authorities will work to create a favorable market environment, accompanied by necessary regulatory measures, to encourage issuers to promote the application of stablecoins in various scenarios, helping to address substantial pain points in business operations and the daily lives of citizens.