Hong Kong Government Highlights Fintech's Role in Cross-Border Trade

According to BlockBeats, Hong Kong's Financial Secretary, Paul Chan, emphasized the significant potential of fintech in cross-border trade. The aim is to address longstanding issues such as slow transaction speeds and high costs in cross-border payments, thereby enhancing service to the real economy. Last week's release of the 'Digital Asset Development Policy Declaration 2.0' highlighted 'advancing application scenarios and cross-sector collaboration' as one of its four pillars. The declaration noted that stablecoins offer a cost-effective alternative outside the traditional financial system, with the potential to transform payment and capital market activities, including cross-border payments. Legislation regarding stablecoins will come into effect on August 1 this year. The Hong Kong government and financial regulators are committed to creating a favorable market environment, supported by necessary regulatory measures, to encourage issuers to expand the application of stablecoins across various scenarios, addressing practical challenges faced by businesses and citizens.