Hong Kong positions stablecoins as an alternative payment tool to fiat currency, not for speculative purposes. The new Stablecoin law reduces cross-border remittance fees and enhances transaction efficiency.

The Hong Kong government is promoting the development of an international gold trading center with plans to build warehouses and complete the infrastructure design for trading and payment of goods, especially precious metals.

MAIN CONTENT

  • Stablecoins in Hong Kong are used as an alternative payment medium, not as a speculative tool.

  • The new Stablecoin law helps reduce cross-border payment fees from 3% to 1%.

  • The Hong Kong government plans to develop an international gold trading center, focusing on warehouse infrastructure and payment trading design.

How are stablecoins positioned in Hong Kong's financial system?

According to Mr. Paul Chan, Secretary for Financial Services and the Treasury of Hong Kong, stablecoins are viewed as a tool for transferring value, replacing fiat currency and not creating speculative opportunities.

This perspective affirms the practical role of stablecoins in supporting transactions while limiting the fluctuations seen in other cryptocurrencies. When widely adopted, stablecoins will refresh payment methods, help reduce risks and increase stability for the local financial market.

How does the new Stablecoin law affect the costs of international payments?

The new Stablecoin law, effective this month, is expected to significantly cut cross-border remittance costs from 3% in traditional banking channels to only about 1% when using stablecoins.

This reduction in fees not only alleviates the cost burden for businesses and users but also improves the speed and efficiency of international payments. This is a significant step forward, supporting cross-border trade growth and enhancing Hong Kong's international competitiveness.

What plans does the Hong Kong government have to develop the international gold trading center?

Mr. Xu Zhengyu stated that the government is organizing two meetings inviting multiple parties to discuss the development of Hong Kong's international gold trading center.

The strategy begins with building warehouses, followed by high-level design for trading and payment systems for goods. This phase shows careful preparation to promote the commodities sector, especially precious metals, and expand Hong Kong's role as a financial center in the international market.

"Stablecoins will help reduce cross-border costs, promote faster and safer transactions, while not creating speculative opportunities."
- Paul Chan, Secretary for Financial Services and the Treasury of Hong Kong, August 2024

Frequently Asked Questions

How do stablecoins differ from traditional fiat money?

Stablecoins are designed to maintain stable value, used as an alternative payment tool, not intended for speculation like popular cryptocurrencies.

How does the new Stablecoin law affect businesses?

The law reduces the cost of international payments, helping businesses save a significant portion of transaction fees, speeding up processes and cross-border payment capabilities.

What does building a gold trading center in Hong Kong signify?

The government aims to turn Hong Kong into an international trading hub for precious metals, enhancing infrastructure to promote efficient trading and payment.

Is the use of stablecoins safe?

According to the Hong Kong government's perspective, stablecoins are regulated to prevent speculative risks, ensuring safety in financial transactions.

How do stablecoins reduce cross-border remittance costs?

Traditional transaction fees reduced from 3% to about 1%, significantly saving costs for individuals and businesses.

Source: https://tintucbitcoin.com/xu-zhengyu-stablecoin-chi-dung-thanh-toan/

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