Stablecoins should not be used for speculation but need to play a stabilizing role in the process of digitizing the asset market, which is a long-term journey.

Mr. Hong Bao Cheng, Chairman of the Hong Kong Financial Development Council, emphasized the role of stablecoins in financial digitization and stated that the process of asset tokenization in Hong Kong is developing rapidly, yet still requires many steps to be perfected.

MAIN CONTENT

  • Stablecoins must play a stabilizing role and should not be used as speculative instruments.

  • The process of digitizing assets in Hong Kong is happening quickly and systematically.

  • The tokenization of asset types will expand in the future, but it cannot be implemented immediately.

How should stablecoins be understood in the context of asset digitization?

Mr. Hong Bao Cheng, Chairman of the Hong Kong Financial Development Council, affirmed that stablecoins should not be used as speculative tools but need to fulfill their role in stabilizing the market during the digital transformation.

Digitizing the asset market is a long journey; stablecoins must be viewed as a factor to maintain stability, not as a short-term profit tool.

Hong Bao Cheng, Chairman of the Hong Kong Financial Development Council, July 20, 2023

This perspective reflects the caution from Hong Kong's financial leadership in ensuring sustainable and transparent development in the cryptocurrency market while avoiding risks of financial bubbles related to speculation on stablecoins.

How is Hong Kong developing the digitization of financial assets?

According to Chairman Hong Bao Cheng, Hong Kong is currently a financial center rapidly promoting the digitization of asset types, leading in the region compared to many other financial centers.

He stated that stablecoins are just the first link in this process, as digital currencies are used as transaction intermediaries, preparing for a broader tokenization of other asset types.

This development goes hand in hand with building digital infrastructure and a legal framework to ensure the safety and efficiency of the digitized financial market.

How will the tokenization of assets in Hong Kong progress in the future?

Mr. Hong Bao Cheng stated that in the future, the tokenization of financial assets will not only be limited to currencies but will expand to various other assets, yet this is a long and complex process.

The tokenization of all assets cannot be implemented immediately; it requires time to perfect the techniques, regulations, and build trust among stakeholders.

This shows that Hong Kong is choosing a cautious yet decisive approach to developing a sustainable digital financial market, deeply applying Blockchain and Token technology.

Frequently asked questions about stablecoins and financial digitization

Are stablecoins an effective speculative tool?

No, stablecoins are designed to maintain value stability and should not be used as speculative tools according to advice from leading financial experts in Hong Kong.

Is the process of digitizing financial assets fast?

Hong Kong is digitizing assets much faster than many other financial centers, but still needs time to comprehensively complete this process.

At what stage is the tokenization of assets in Hong Kong?

Currently, stablecoins are the first to be tokenized; other asset types will gradually be tokenized according to a long-term and cautious roadmap.

What are the risks of using stablecoins in investments?

The biggest risk is price volatility or using stablecoins for speculation that destabilizes the market, so prioritizing the stabilizing role is recommended by experts.

What is the role of the Hong Kong government in developing stablecoins?

The government plays a role in promoting the legal framework, providing technical support, and oversight to ensure the transparent and stable development of stablecoins.

Source: https://tintucbitcoin.com/hong-pizheng-stablecoin-la-cuoc-chien-dai/

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