According to ChainCatcher, the Secretary for Financial Services and the Treasury of Hong Kong, Mr. Xu Zhengyu, stated in an interview yesterday that the underlying basis of stablecoins is legal tender, and in the future, they can be used for payment functions through blockchain and other technologies in the form of electronic assets.
Mr. Xu said that stablecoin issuers will be regulated by the Hong Kong Monetary Authority, and the regulatory principles are similar to traditional financial assets. Relevant issuers must comply with regulations on reserve asset management and redemption, including proper segregation of customer assets, and must complete redemption requests within one working day when stablecoin holders request it.
Mr. Xu added that due to the payment characteristics of stablecoins, when services or projects are carried out in "Belt and Road" regions with significant currency exchange rate fluctuations or immature financial systems, using local currency for payment may involve certain risks, and parties can use stablecoins for payment purposes instead.
