Paul Chan on Financial Technology and International Trade
Paul Chan, the Financial Secretary for the Hong Kong Special Administrative Region, has recently articulated his views on the significant role financial technology can play in international trade, particularly in enhancing cross-border payment systems. In a new blog entry, he highlighted persistent issues such as sluggish processing times and elevated costs associated with traditional payment methods, underscoring the need for innovative solutions to better accommodate the real economy.
Digital Asset Development Policy Declaration 2.0
As part of Hong Kong’s initiative to modernize its financial infrastructure, the newly introduced “Digital Asset Development Policy Declaration 2.0” includes “Promoting Application Scenarios and Cross-Boundary Cooperation” as one of its primary objectives. Within this framework, Chan cited stablecoins as a promising alternative to conventional financial instruments, offering both cost efficiency and the potential to overhaul practices within the payment sector as well as in capital markets.
Regulatory Support for Stablecoins
With regulations governing stablecoins set to come into effect on August 1, the Hong Kong government, alongside its financial regulatory bodies, is committed to fostering a supportive market environment. This endeavor aims to facilitate the integration of stablecoins into various usage contexts, which could significantly alleviate challenges faced by businesses and improve the financial experiences of citizens in their everyday transactions.
This move toward regulatory clarity and technological innovation positions Hong Kong as a forward-thinking player in the global financial landscape.
