Hong Kong Financial Secretary: "Stablecoins Have Potential to Innovate Payments and Capital Markets"
Summary
- The Hong Kong government has reported its expectations for financial innovation through the use of stablecoins.
- Hong Kong Financial Secretary Paul Chan stated that stablecoins have the potential to bring changes to payment and capital market activities.
- The Hong Kong government announced plans to clarify the responsibilities of stablecoin issuers and encourage real-world adoption through the regulatory framework taking effect in August.
A report has emerged indicating that the Hong Kong government has high expectations for financial innovation utilizing stablecoins. As regulations related to stablecoins are set to be fully implemented in Hong Kong on August 1, authorities are reportedly working to create an environment for applying these assets to the real economy.
According to BlockBit, a media outlet specializing in virtual assets (cryptocurrencies), on the 29th (local time), Financial Secretary 陳茂波 (Paul Chan) of Hong Kong emphasized in his official blog that "stablecoins can serve as a cost-efficient alternative outside traditional financial systems and, in particular, have the potential to drive change in payments and capital market activities."
He specifically explained, "Stablecoins can address long-standing problems of the existing system, such as slow and expensive cross-border payments."
In addition, the Hong Kong government plans to clarify the responsibilities and requirements of stablecoin issuers and promote a healthy market environment and real-world usage by implementing a new regulatory framework effective from August.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
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