Hong Kong Treasury Secretary: Stablecoins are not a "tool for making money" and will become an important infrastructure to improve financial efficiency

On June 29, Hong Kong Financial Services and the Treasury Bureau Director Paul Hui emphasized in a TV interview that the development of digital assets is a global trend, and the role of stablecoins should not be misunderstood as a tool for speculation or hype, but a key element to improve efficiency in the future financial system.

Paul Hui pointed out that in the traditional financial system, funds usually need to be transferred or cleared through multiple intermediaries, and the whole process is complicated and there are delays in time and cost. Stablecoins issued and circulated based on blockchain technology can achieve almost instant value transfer, which is expected to significantly speed up the speed of financial operations and provide more efficient financial services for the real economy.

"Stablecoins are a financial development tool, not a so-called shortcut to wealth," Paul Hui said. "We are concerned about its actual effectiveness in cross-border payments, trade settlements and even supply chain finance."

Regarding the issue of "whether stablecoins will impact monetary sovereignty" that the outside world is concerned about, Paul Hui responded that the Hong Kong SAR government remains highly alert to potential risks and has established a clear regulatory framework to deal with them. He stressed that once stablecoins are included in mainstream financial activities, there must be a sound regulatory system, including that stablecoin issuers must have a certain amount of capital or legal reserves, and clearly set redemption mechanisms and time limits to ensure that buyers and related institutions can smoothly redeem fiat currencies when needed.

"We are fully aware of the risks, but we also see the positive value of this technology," he added, "Hong Kong's approach is prudent and inclusive. We will neither blindly promote nor miss opportunities for innovation and development."

At present, the Hong Kong Special Administrative Region Government has passed the Stablecoin Ordinance, which includes stablecoin issuers in the financial regulatory framework and has established a regulatory "sandbox" to promote the testing and commercial application of related technologies. The first batch of shortlisted companies include local large-scale technology companies and cross-border e-commerce groups, which plan to issue stablecoin products anchored to the Hong Kong dollar and offshore RMB.