Stablecoins Could Reduce Cross-Border Payment Costs, Says Hong Kong Investment Committee Chair

According to BlockBeats, the Chairman of the Hong Kong Investor and Financial Education Council, Du Gan-kun, highlighted in a recent interview that stablecoins primarily serve as tools for cross-border remittances. He noted that if stablecoins gain widespread acceptance in society, they could potentially lower the costs associated with cross-border payments. Stablecoins are linked to virtual currencies and are issued by private entities, backed by mainstream fiat currencies like the U.S. dollar. However, when backed by cryptocurrencies, they tend to exhibit high volatility. Du advised that individuals who do not fully understand these products should refrain from investing in them.