Stablecoins themselves do not have appreciation potential, Hong Kong Monetary Authority chief executive Eddie Yue Wai-man wrote in an online article.

This came as stablecoins, pegged to fiat currencies like the greenback, have surged in usage—from US$20 billion (HK$159 billion) in 2020 to nearly US$250 billion by May 2025.

Yue emphasized that stablecoins are not investment or speculative tools but rather a payment instrument leveraging blockchain technology, bridging traditional finance and digital assets. Yue called for a more objective and calm approach to stablecoins.

Meanwhile, Yue said at an event on Monday that Hong Kong has set relatively stringent standards for stablecoin issuers with tokens expected to serve specific purposes such as facilitating cross-border trade.

With high entry thresholds, only a limited number of licenses will be issued when the stablecoin law comes into effect in August, Yue said.

The HKMA’s stablecoin sandbox program aims to allow industry players to test application scenarios and share insights, but participating institutions in the sandbox does not guarantee a license, Yue noted, adding that participants will need to submit additional license applications in the future.

He emphasized that stablecoins have inherent payment attributes and that the forthcoming regulation will provide a comprehensive regulatory framework for issuers and foster a healthy and sustainable development of the industry.

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Stablecoins themselves do not have appreciation potential, says HKMA