Stablecoins not for speculation, says financial secretary

Hong Kong’s positioning on stablecoins is very clear and will not provide a chance for speculation, says Secretary for Financial Services and the Treasury Christopher Hui Ching-yu.

The government will use stablecoins as a payment tool and another form of legal tender, Hui said on a radio program, adding that the public should be cautious about potential speculation over the cryptocurrency.

He noted that the adoption of stablecoins will help lower payment costs to 1 percent from 3 percent through the banking system, enhancing economic efficiency.

He also mentioned that the authorities will facilitate the inclusion of real estate trust funds into the Connect schemes – channels established to link the overseas and mainland markets. But Hui stressed that the administration will need to discuss such arrangements with mainland China, which will take time.

STAFF REPORTER