TechFlow news, on June 20, Xavier Cheng, Financial Secretary of the Hong Kong Special Administrative Region Government, said in an interview at the Lujiazui Forum that the use of stablecoins aims to return to the essence of finance and effectively address pain points in economic activities, rather than simply pursuing technological application or mere interoperability. Regulation of stablecoin issuers is similar to that of comparable financial institutions, specifically reflected in the following:
First, the issuer itself must have capital; second, after exchanging money with stablecoin holders, the reserves must at all times be no less than the value of the currency backing the unredeemed stablecoins; third, if a stablecoin holder wishes to exchange back into the original fiat currency with the issuer, it must be completed within one trading day, business day, or working day.
In addition, regarding whether stablecoins pegged to the RMB could accelerate RMB internationalization, Cheng stated that from a regulatory perspective, this possibility is not ruled out. "Hong Kong's entire regulatory logic is very clear: whatever is written in law must be followed, and the law allows different fiat currencies to serve as underlying reference assets for stablecoins."
However, he also pointed out, "If we are to proceed, we must consider the country's overall exchange rate and monetary policy. We already have some legal space, but specific implementation requires comprehensive assessment of risks and overall pros and cons."
