According to ChainCatcher, the Secretary for Financial Services and the Treasury of the Hong Kong Special Administrative Region, Xu Zhengyu, stated at the Lujiazui Forum that the use of stablecoins should address the pain points of economic activities, rather than merely pursuing technological applications. Regulation of stablecoin issuance is similar to that of financial institutions.
First, the issuer must have capital. Second, the issuer must ensure that the reserves are not less than the value of the currency backing the unredeemed stablecoins. Third, the conversion of stablecoin holders to the local currency must be completed within one trading day.