Hong Kong Financial Secretary: "Stablecoins Will Reduce Payment Costs"

Uk Jin

Summary

Paul Chan, Hong Kong Financial Secretary, stated that stablecoins are not speculative as a means of payment.
He emphasized that stablecoins can help reduce payment fees and contribute to increased economic efficiency.
It was reported that the Stablecoin Ordinance has been in effect in Hong Kong since August.

The Hong Kong authorities have presented a clear policy stance on stablecoins (virtual assets linked to the value of fiat currency). In particular, they expressed a positive outlook on stablecoins in terms of improving payment efficiency.

According to Jinse Finance on the 25th (KST), Paul Chan, Hong Kong's Financial Secretary, stated in a release that "stablecoins, as a means of payment and another form of legal tender, are not speculative."

Secretary Chan highlighted the potential of stablecoins to reduce payment fees. He explained, "While cross-border payment fees through the banking system can reach up to 3%, stablecoins can potentially lower those fees to as little as 1%," adding that this "can contribute to enhancing economic efficiency."

In Hong Kong, the Stablecoin Ordinance, a bill regulating stablecoins, went into effect in August.