Hong Kong Treasury Bureau's Paul Chan: Hong Kong's positioning on stable coins is clear and there are no opportunities for speculation.

The Hong Kong "Stable Coin Regulations" will come into effect this month. Hong Kong Financial Secretary and Treasury Secretary Chan Cheuk-yan stated on August 24 that Hong Kong has a clear positioning for stable coins, which are seen as a delivery tool and another form of legal tender. There is no opportunity for speculation. He pointed out that the costs of payments through the banking system could be as high as 3%, while the costs of using stable coins are expected to decrease to 1%, reducing cross-border payment costs and improving economic efficiency. Chan Cheuk-yan revealed that in order to develop Hong Kong into an international hub for gold trading, two meetings have been held with different stakeholders, starting from storage and including new developments in trading and settlement at the top level. He added that the authorities are fully planning for the development of Hong Kong in the direction of commodities, especially precious metals. Furthermore, the "Connect" mechanism will celebrate its 11th anniversary. Chan Cheuk-yan believes that continuous enrichment and expansion of varieties under secure and controllable risk channels is the main direction. They will also promote the inclusion of real estate investment trusts in the Connect mechanism, but discussions with the mainland are necessary.