The Financial Secretary of Hong Kong, Paul Chan, recently clearly outlined Hong Kong's unique path in developing stablecoins: using 'practical application scenarios' as a filter, giving priority to projects that have real payment and storage functions and can effectively address pain points such as cross-border payment efficiency and costs in their license applications. He emphasized that Hong Kong's exploration of stablecoins is effectively isolated from the mainland financial system, taking advantage of the 'one country, two systems' framework, while its experience can also benefit the mainland, making it a 'testing ground' and 'firewall' for national financial innovation.
The core of this regulatory wisdom lies in accurately identifying the essential value of stablecoins. Paul Chan clearly pointed out that stablecoins are not speculative digital assets but practical tools aimed at enhancing the efficiency of financial infrastructure. Their vitality lies in their ability to solve real problems—such as liberating traditional cross-border payments from the constraints of taking several days and incurring high costs, achieving near-instantaneous fund flows at significantly reduced costs.
Therefore, Hong Kong's licensing selection logic is clear: application scenarios are paramount. Those solutions that can prove their clear value positioning in real commercial circulation and livelihood payments will receive a priority pass in regulatory approval.
Hong Kong builds this 'intelligent firewall' relying on institutional advantages and regulatory resilience. The 'one country, two systems' framework provides Hong Kong with the space to boldly experiment at the forefront of financial technology, while a rigorous regulatory design ensures that risks are controllable.
Paul Chan personally leads a cross-departmental coordination group, strongly integrating the regulatory powers of the Hong Kong Monetary Authority (the stablecoin regulatory body) and the Securities and Futures Commission (the regulatory body for virtual asset trading platforms), aiming for 'seamless connection with no loopholes.' This top-down collaborative mechanism aims to prevent any risk factors from proliferating due to regulatory gaps, ensuring that stablecoin experiments are carried out safely within a solid enclosure.
Hong Kong's firewall is by no means an isolated barrier; its design has a dual function: on one hand, it effectively blocks the risks that may arise from local stablecoin exploration from transmitting into the mainland financial system, maintaining the bottom line of national financial security; on the other hand, it serves as a 'window for experience output' toward the mainland. The practical experiences and lessons accumulated by Hong Kong in sandbox testing, scenario implementation, consumer protection, and cross-border compliance will provide valuable 'references' for the mainland's future possible digital currency expansion and cross-border payment network upgrades.
Hong Kong's stablecoin strategy is essentially a finance innovation calibration aimed at solving real problems. It rejects lofty speculation detached from physical demand and directs resources and regulatory permissions precisely toward application scenarios that can create real value.
This pragmatic path not only opens new avenues for Hong Kong to consolidate its status as an international financial center but also, through its unique dual role as a 'testing ground-firewall,' contributes an irreplaceable Hong Kong solution to the entire country's digital currency strategy and enhancement of financial technology competitiveness—this is the unique chapter that Hong Kong can write about integration, innovation, and security under 'one country, two systems.'