The Secretary for Financial Services and the Treasury of the Hong Kong Special Administrative Region, Chan Mo-po, stated that the potential of financial technology in cross-border trade is immense, and the aim is to address long-standing issues such as slow and costly cross-border payments, as well as to better serve the real economy in the payment sector. One of the four pillars of the "Digital Asset Development Policy Declaration 2.0" published last week is "promoting application scenarios and intersectoral collaboration," which mentions that stablecoins provide a cost-effective alternative outside the traditional financial system and have the potential to drive transformation in payment and capital market activities, including cross-border payments. Legislation on stablecoins will come into effect on August 1 of this year, and the SRA government and financial regulators will strive to create a favorable market environment with necessary regulatory measures to promote the use of stablecoins in various scenarios and help address practical issues faced by businesses and citizens.
