Hong Kong Treasury Secretary Paul Hui: Stablecoin redemption must be completed within one working day

Planet Daily News: Hong Kong Financial Secretary Xu Zhengyu stated in a radio program interview yesterday that the underlying basis of stablecoins is legal tender, and in the future, they can be used as a payment function through blockchain technology in electronic asset form. Xu Zhengyu said that stablecoin issuers will be regulated by the Hong Kong Monetary Authority, with regulatory principles similar to traditional financial assets. Relevant issuers must comply with regulations on reserve asset management and redemption, including proper segregation of customer assets and completing redemption requests within one working day when requested by stablecoin holders. Xu further added that due to the payment characteristics of stablecoins, when services or projects are conducted in "Belt and Road" regions with significant currency exchange rate fluctuations or immature financial systems, using local currency for payment may pose certain risks, and stablecoins can be used as an alternative payment method. (Aastocks)