Odaily Planet Daily News: Hong Kong's Secretary for Financial Services and the Treasury, Xu Zhengyu, recently stated at the Lujiazui Forum that stablecoins should focus on addressing real economic needs, rather than just pursuing technological innovation or interconnectivity. He pointed out that the issuance of stablecoins should follow regulatory principles similar to traditional financial institutions, including issuers having capital, maintaining sufficient reserves at all times, and ensuring that stablecoins can be redeemed within one working day.
Regarding whether stablecoins can be linked to the Chinese yuan to promote its internationalization, Xu Zhengyu responded that from a legal perspective, this possibility cannot be ruled out. Hong Kong's regulatory logic is clear and has legal basis, allowing stablecoins to anchor multiple legal currencies. However, he also emphasized that in order to implement such arrangements, it is necessary to comprehensively consider the country's exchange rate mechanism, monetary policy, and related risks.
