Hong Kong Official New Approach: Virtual Currency Embraces Opportunities, Stablecoins Become Key

Hong Kong Financial Secretary Paul Chan recently made remarks revealing the latest attitude of this international financial center towards virtual currencies.

The Dance of Financial Innovation and Risk Balance

Paul Chan pointed out that virtual currencies represent a development direction of financial innovation, and Hong Kong should maintain an open attitude. However, he also candidly highlighted the current key challenges: although blockchain technology has broad prospects, investor protection mechanisms still have loopholes, and anti-money laundering risks need to be fully addressed.

The logic behind this statement is clear — Hong Kong does not intend to reject virtual currencies but aims to find a balance between innovation and security.

Regulatory Framework as an Inevitable Choice

Faced with these challenges, the government’s attitude is to adopt a cautious yet proactive strategy. Paul Chan emphasized that virtual currencies need to be incorporated into an appropriate regulatory framework, not to hinder development but to protect market participants.

At the same time, he expressed reservations about the comprehensive promotion of virtual currencies, believing that education and publicity need to be strengthened to enable investors to fully understand the mechanisms and risks involved. This indicates that Hong Kong’s official approach is: establish standards first, then promote gradually.

Stablecoins: The Next Key Focus

Of particular interest is Paul Chan’s attitude towards stablecoins. He stated that the government is considering gradually advancing the development of stablecoins and remains open to schemes linked to gold or other assets.

This suggests that stablecoins could become the next focus in Hong Kong’s virtual currency sector. Schemes linked to gold are especially attractive because they combine the stability of traditional assets with the convenience of digital assets, aligning with Hong Kong’s characteristics as an international financial center.

However, Paul Chan also emphasized that such stablecoin schemes need to be handled cautiously, indicating that Hong Kong regulators will adopt a step-by-step approach to ensure each step is thoroughly justified.

Hong Kong’s stance provides a new reference case for the development of virtual currencies and stablecoins in Asia.