Concerning Stablecoins! The Hong Kong Financial Secretary's Recent Statements.
Recently, Hong Kong Financial Secretary Paul Chan expressed several important views on stablecoins, mainly focusing on the positioning, regulatory policies, and development direction of stablecoins, which are as follows:
Clarifying the Positioning of Stablecoins: Paul Chan emphasized that stablecoins are essentially a payment tool aimed at addressing long-standing pain points such as slow cross-border payment speeds, high costs, and low efficiency. Its core value lies in serving the real economy, as an alternative to the traditional financial system, with the potential to reshape payment and capital market activities.
Emphasizing Regulation and Compliance: The "Stablecoin Ordinance" was passed by the Hong Kong Legislative Council on May 21 and will take effect on August 1. After the ordinance comes into effect, the Hong Kong Monetary Authority will promptly handle licensing applications, encouraging compliant businesses to operate. Issuers must apply for a license from the Hong Kong Monetary Authority and meet minimum capital requirements of HKD 25 million, 100% high liquidity asset reserves, and no additional redemption conditions. Additionally, issuers must comply with a series of risk management and anti-money laundering requirements, as well as provide specific business justifications, such as application scenarios, explaining how their stablecoin business can effectively address pain points in economic activities.
Promoting the Expansion of Application Scenarios: Paul Chan stated that the Hong Kong Special Administrative Region government and financial regulatory authorities will strive to create a favorable market environment, coupled with necessary regulatory measures, to encourage issuers to extend the application of stablecoins to various scenarios, helping to address substantial pain points in both business operations and citizens' lives. The "Hong Kong Digital Asset Development Policy Declaration 2.0" proposes to "promote application scenarios and cross-sector cooperation," emphasizing that stablecoins have the potential to bring about changes in payment and capital market activities, including cross-border payments.
Elaborating on Strategic Significance: Paul Chan believes that the stablecoin ecosystem will attract global capital and technology to converge in Hong Kong, helping Hong Kong to become the world's largest cross-border asset management center within 2-3 years. Through a "multi-currency peg + value regulation" model, Hong Kong allows pegging to currencies such as the Renminbi and US Dollar, avoiding reliance on a single US Dollar while providing a buffer for the mainland to explore the internationalization of the offshore Renminbi, and also consolidating Hong Kong's status as an international financial center.
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Era token's daily increase reached 18%, with trading volume hitting a three-month high.
I checked the on-chain data and found that two whale addresses have collectively increased their holdings by 2 million tokens, and both are withdrawing from exchanges to cold wallets. This signal is quite clear. There are rumors in the community that a significant ecological project will launch next week, combined with the overall recovery of the Layer 2 sector.
Era has officially announced a deep collaboration with cross-chain giant Chainlink, which will integrate its brand new price feed system. This means that the security of lending and derivative projects within the Era ecosystem will take a step up. The latest report from Binance Research indicates that a comprehensive oracle system can increase the average market value of public chain ecosystems by 40%. Currently, there are already 32 DeFi projects on Era, with total locked value exceeding 500 million dollars.
How long do you think this market trend can last? $ERA
1. Bitcoin continues to consolidate, showing slight expansion characteristics, performing quite strongly, with minimal pullback, earning the title of 'highly resilient' pie! Many funds are still waiting for the right opportunity to enter. 2. Ethereum has experienced a significant adjustment, with lows approaching 3500. There are rumors in the market about Sun Ge unloading, but it is still uncertain whether it will have a sustained impact on the market. Fortunately, the current volatility remains within an acceptable range. 3. Block, a company holding a large amount of Bitcoin, has officially been included in the S&P 500 index today. 4. Trump has stated that he will impose a unified tariff of 15% to 50% on most countries; meanwhile, Goldman Sachs believes that even if a trade agreement is reached, the dollar may still face pressure. 5. FTX announced that it will initiate the next round of debt distribution on September 30, during which $1.9 billion of disputed reserve funds will be released. 6. JPMorgan pointed out that the prediction of the stablecoin market reaching $2 trillion is overly optimistic, as there is still significant room for improvement in the infrastructure of this sector.
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