According to Deep Tide TechFlow, Hong Kong Legislative Council member Paul Chan stated that fiat-backed stablecoins must be 100% backed by highly liquid currency-like assets, with the main function being international payments, and no speculation opportunities.
In the formulation of the (stablecoin regulation), references were made to the United States, Japan, the EU's MiCA, and Singapore's (Payment Services Act), with legislation considering international circulation and demand, following international and national standards.
Paul Chan also pointed out that Hong Kong's stablecoins should not compete for the existing product market but should explore new markets.