Stablecoins Now Official Payment Method in Hong Kong With No Speculative Use, Says Financial Secretary

Hong Kong Recognises Stablecoins As Legal Payment Tools Not Speculative Assets

Hong Kong is taking a decisive step in digital finance by formally recognising stablecoins as legitimate payment tools rather than instruments for speculation.

Christopher Hui Ching-yu, Secretary for Financial Services and the Treasury, stressed that these digital coins are intended to facilitate transactions and streamline financial processes.

“The positioning of stablecoins in Hong Kong is clear, serving as a delivery tool and another manifestation of legal tender, with no speculative opportunities.”

Will Stablecoins Cut Cross-Border Transaction Costs

Authorities anticipate that the adoption of stablecoins could significantly reduce the cost of cross-border payments.

Traditional international transfers typically carry fees around 3%, but early estimates suggest stablecoin transactions could bring this down to about 1%, offering potential savings of up to 2% per transaction.

This move is seen as a way to boost Hong Kong’s competitiveness in financial services while making payments faster and more efficient for businesses.

How Regulation Will Shape Usage And Security

The government has emphasised that stablecoins will not be treated as investment assets.

By limiting their use to payments, the policy aims to mitigate risks linked to speculation and protect financial stability.

Compliance measures, including strict Know-Your-Customer (KYC) checks, will ensure the digital currency ecosystem remains secure and resistant to money laundering and terrorist financing.

Aligning With International Standards And Future Rules

Hong Kong’s approach is in line with global regulatory trends, including upcoming Basel Committee guidelines, which will come into effect on 1 January 2026.

These rules require financial institutions handling digital assets to meet the same capital adequacy standards as those dealing with traditional assets.

The stablecoin framework is set to be fully implemented later this year, with the government and financial institutions closely monitoring its effect on payments, trade, and inclusion.

Financial Industry Response Remains Quiet

So far, there has been little public pushback from industry players, and major financial institutions in Hong Kong have yet to release formal statements on the policy.

The clear emphasis on stablecoins as payment mechanisms rather than speculative instruments has been broadly welcomed, suggesting a smooth transition for wider adoption.