Hong Kong Monetary Authority Chief Executive Eddie Yue: The cooling measures for stablecoins still need to be strengthened

ChainCatcher news, according to Shanghai Securities News, Hong Kong Monetary Authority President Yu Weiwen has published an article discussing stablecoins again. Yu Weiwen stated that the discussion on stablecoins in the market and society over the past month still needs to be strengthened in terms of both intensity and cooling down, and he talked about how to implement the "Stablecoin Regulation" according to prudent and sustainable principles. Yu Weiwen emphasized the necessity to prevent excessive speculation on stablecoins in the market and public opinion, noting that there are several phenomena recently worth paying attention to. First, there is excessive conceptualization.

Yu Weiwen revealed that, based on Hong Kong's experience, dozens of institutions have actively approached the Monetary Authority team, some of which have explicitly expressed their intention to apply for stablecoin licenses, while others are in a preliminary exploratory stage. However, many remain at the conceptual stage, proposing visions such as enhancing cross-border payment efficiency, supporting Web3.0 development, and improving foreign exchange market efficiency, but lack actual application scenarios and cannot propose feasible specific plans and implementation strategies, let alone possess the awareness and capability to manage risks. Some institutions that can provide application scenarios, however, lack the technology to issue stablecoins and the experience and capability to manage various financial risks.

Yu Weiwen suggested that there can be multiple models for participating in stablecoins, and for such institutions, a more practical approach seems to be collaborating with other stablecoin issuing institutions to provide application scenarios, rather than pursuing the role of an issuing entity.