Odaily News Hong Kong Treasury Secretary Paul Hui said in an interview on a radio program yesterday that the underlying stablecoin is legal tender, which can be used as a payment function in the form of electronic assets through blockchain and other technologies in the future. Paul Hui said that the issuers of stablecoins are supervised by the Hong Kong Monetary Authority, and the general principles of supervision are similar to those of traditional financial assets. The relevant issuers must comply with the regulations on reserve asset management and redemption, including proper separation of customer assets. When stablecoin holders make redemption requests, they must be completed within one working day to meet user requirements.
Xu Zhengyu added that since stablecoins have payment characteristics, when services or projects are carried out in the "Belt and Road" region, and the local currency exchange rate fluctuates greatly or the financial system is not mature, if the local currency is used for payment, there will be certain risks. The other party can use stablecoins for payment purposes. (Aastocks)