The Chairman of the Hong Kong Financial Development Council recently talked about the issue of stablecoins, and he was quite straightforward: stablecoins should not be seen solely as a way to make short-term speculative profits; they need to be treated as a long-term endeavor.

In simple terms, this means that one should not be glued to price fluctuations like with stocks, but rather genuinely utilize them, especially in areas such as payments and asset transactions. Everyone is moving towards digitization now, and stablecoins must keep up with this trend by bringing payment systems and asset markets online, so that they can truly serve their purpose.

Starting from August 1st, Hong Kong will officially regulate stablecoins. With this new regulation, many global financial institutions may be more willing to develop in Hong Kong because the rules are clear, and everyone knows how to play the game. For example, issuing stablecoins, custodial assets, and trading transactions can all be done compliantly in Hong Kong moving forward. However, Hong Ping also mentioned that Hong Kong is not doing this to compete with the US dollar stablecoin market, but rather to solidify its own financial technology infrastructure. In other words, the goal is to establish a strong foundation first, making it appealing for others to come, rather than rushing to compete.

In fact, this line of thinking is quite smart. With the global focus on digital currencies, if Hong Kong can clarify the rules and improve its technology and services, naturally, companies will want to come. After all, the biggest fear in financial markets is uncertainty; the more transparent the rules, the more willing people are to invest. Therefore, Hong Kong's push for stablecoin regulation is a good thing in the long run, as it will at least make the industry more regulated and attract more international players.