Recently, senior officials of the Hong Kong Special Administrative Region government have expressed a strong interest in the development prospects of financial technology. The Financial Secretary, Paul Chan, pointed out in his latest blog that financial technology holds great potential in cross-border trade and is expected to address long-standing issues in the industry, such as low efficiency and high costs of cross-border payments, thereby better serving the real economy.

This viewpoint aligns with the recently released "Digital Asset Development Policy Declaration 2.0" from Hong Kong. The policy declaration proposes four main pillars, one of which is 'promoting application scenarios and cross-sector cooperation'. The declaration specifically mentions that stablecoins, as a cost-effective alternative to the traditional financial system, have the potential to bring revolutionary changes to payment and capital market activities, especially in the area of cross-border payments.

It is worth noting that Hong Kong will officially implement regulations related to stablecoins on August 1st of this year. The government and financial regulatory agencies have pledged to work towards creating a favorable market environment while providing the necessary regulatory measures. This initiative aims to encourage issuers to promote the application of stablecoins in various scenarios to address practical issues in business operations and the daily lives of citizens.

Hong Kong's move demonstrates its firm commitment to digital financial innovation. By promoting the use of stablecoins, Hong Kong hopes to gain a favorable position in the global fintech competition and inject new vitality into its status as an international financial center. However, finding a balance between innovation and regulation remains a major challenge for the Hong Kong government.