Hong Kong Financial Secretary: Stablecoins have the potential to revolutionize payment and capital market activities, including cross-border payments

PANews reported on June 29 that Hong Kong SAR Government Financial Secretary Paul Chan Mo-po said in a statement that financial technology has great potential in cross-border trade applications, and the goal is to solve the long-standing pain points of slow cross-border payments and high costs, and better serve the real economy in the field of payments. The Digital Asset Development Policy Declaration 2.0 released last week has one of the four pillars, "Promoting Application Scenarios and Cross-Sector Cooperation", which mentions that stablecoins are cost-effective alternatives to the traditional financial system and have the potential to bring changes to payment and capital market activities, including cross-border payments. The law on stablecoins will take effect on August 1 this year. The SAR government and financial regulators will strive to create a favorable market environment, with necessary regulatory measures, to encourage issuers to promote the application of stablecoins to different scenarios, helping to solve the real pain points in business and even in the lives of citizens.