ChainCatcher News, Hong Kong Secretary for Financial Services and the Treasury Christopher Hui stated in an interview yesterday that the underlying asset of stablecoins is fiat currency, and in the future, it can be used as a payment function in the form of electronic assets through technologies such as blockchain. Christopher Hui said that stablecoin issuers are regulated by the Hong Kong Monetary Authority, and the general principles of regulation are similar to those of traditional financial assets. Relevant issuers must comply with regulations on reserve asset management and redemption, including proper segregation of customer assets, and must complete redemption within one working day to meet user requirements when stablecoin holders make a redemption request. Christopher Hui added that since stablecoins have payment characteristics, when services or projects are carried out in the 'Belt and Road' region, and the local currency exchange rate is volatile or the financial system is not mature, there will be certain risks if the local currency is used for payment, and the other party can use stablecoins for payment.