Hong Kong: Stablecoins are expected to bring changes to the capital market, driving issuers to promote stablecoin applications to different scenarios

Hong Kong Financial Secretary Paul Chan stated that there is enormous potential for the application of financial technology in cross-border trade, with the goal of addressing long-standing pain points such as slow cross-border payment speeds and high costs, and better serving the real economy in the payment field. The "Digital Asset Development Policy Declaration 2.0" released last week, one of the four pillars, is to "promote application scenarios and cross-border cooperation". It mentions that stablecoins are a cost-effective alternative to traditional financial systems and have the potential to bring changes to payment and capital market activities, including cross-border payments. The legislation on stablecoins will come into effect on August 1st this year. The SAR government and financial regulatory agencies will strive to create a favorable market environment, accompanied by necessary regulatory measures, to promote the application of stablecoins by issuers in different scenarios, helping to solve the real pain points in business and citizens' lives. (Caixin News Agency)