Hong Kong Financial Secretary: Does not rule out the possibility of stablecoins being pegged to the Renminbi, the use of stablecoins is to return to the essence of finance.

On June 20, the Secretary for Financial Services and the Treasury of the Hong Kong Special Administrative Region Government, Mr Christopher Hui, said in an interview at the Lujiazui Forum that the use of stablecoins is to return to the essence of finance and effectively solve the pain points in economic activities, rather than simply pursuing the application of technology or just to achieve interconnection. Second, if the issuer exchanges money with stablecoin holders, the reserve must not be lower than the value of the currency behind the unredeemed stablecoin at all times; Third, if the holder of a stablecoin wants to swap back the local currency with the issuer, it must be done in one trading day, one business day, or one business day. In addition, as for whether the stablecoin will accelerate the pace of RMB internationalization because it is pegged to the RMB, Xu Zhengyu believes that from a regulatory point of view, this possibility is not ruled out, "The entire regulatory logic in Hong Kong is very clear, what is written in the law is followed, and the law allows different fiat currencies to be used as the underlying benchmark of the stablecoin". However, he also pointed out that "if you want to do it, you have to take into account the exchange rate and monetary policy of the whole country." We already have some legal space, but we need to consider the risks as well as the overall pros and cons."