Hong Kong Treasury Department's Xu Zhengyu: Stablecoins can be used as payment functions through blockchain and other technologies.

On June 6, the Hong Kong Special Administrative Region Government published the "Stablecoin Regulations (Effective Date) Notice" in the Gazette, specifying August 1, 2025 as the implementation date of the "Stablecoin Regulations" (Chapter 656). On June 7, the Secretary for Financial Services and the Treasury of Hong Kong, Christopher Hui, stated on a radio program that the underlying asset of stablecoins is legal tender and can be in the form of electronic assets in the future, using technologies such as blockchain for payment functions. Hui stated that the issuers of stablecoins are regulated by the Hong Kong Monetary Authority, and the regulatory principles are similar to those of traditional financial assets. Issuers must comply with regulations on asset management and redemption, including proper segregation of client assets. When stablecoin holders request redemption, it must be completed within one working day to meet user demands. Regarding the future applications of stablecoins, Hui gave an example of using stablecoins for payments in regions along the "Belt and Road" initiative, where local currency exchange rates are volatile or financial systems are not mature. In such cases, using local currency for payments may pose risks, so parties can use stablecoins for payment purposes to overcome current obstacles in cross-border payments.