Hong Kong Treasury Secretary: The law does not rule out the possibility of stablecoins being pegged to the RMB, but a comprehensive assessment of risks and policy coordination is needed

Odaily News Hong Kong Financial Services and Treasury Secretary Paul Chan said at the Lujiazui Forum recently that stablecoins should focus on solving real economic needs rather than just pursuing technological innovation or interconnection. He pointed out that the issuance of stablecoins should follow similar regulatory principles as traditional financial institutions, including that issuers must have capital, always maintain sufficient reserves, and ensure that stablecoins can be redeemed within one business day.
Regarding whether stablecoins can be pegged to the RMB to promote the internationalization of the RMB, Xu Zhengyu responded that this possibility is not ruled out from a legal perspective. Hong Kong's regulatory logic is clear and has a legal basis, allowing stablecoins to be anchored to multiple legal currencies. However, he also emphasized that if such an arrangement is to be implemented, the country's exchange rate mechanism, monetary policy and related risks must be comprehensively considered.