TechFlow news, June 25 — According to the Hong Kong Wen Wei Po, Chu Chengyu, co-founder of Hong Kong fintech company IDA and member of the Hong Kong Special Administrative Region's Third Generation Internet Development Task Force, said that IDA intends to apply for a stablecoin license in Hong Kong, contributing to Hong Kong and the nation's development in Web3.
Chu stated that stablecoins should be viewed as payment tools rather than investment or speculative instruments. Under Hong Kong's Stablecoin Ordinance, all stablecoins must be backed by legal tender reserves, and their value should not significantly deviate from the underlying fiat currency. He noted that the primary use cases for Hong Kong-issued stablecoins are expected to be cross-border trade and investment settlement.
