Hong Kong: Stablecoins are expected to bring changes to capital markets, and will promote the application of stablecoins to different scenarios

Paul Chan, Hong Kong's financial secretary, said the potential of fintech applications in cross-border trade is huge, with the goal of solving the long-standing pain points of slow and high cost of cross-border transfer, and better serving the real economy in the payment sector. One of the four pillars of the Digital Asset Development Policy Declaration 2.0 released last week is to "promote application scenarios and cross-sector cooperation". It mentions stablecoins as a cost-effective alternative outside the traditional financial system, which has the potential to revolutionize payments and capital markets activities, including cross-border transfer. The stablecoin legislation will come into effect on August 1 this year. The SAR government and financial regulators will strive to create a favorable market environment and take necessary regulatory measures to promote the application of stablecoins to different scenarios, so as to help solve the real pain points in business and people's lives.