Hong Kong Treasury Bureau's Eddie Yue: Stablecoin Holder Redemption Requests Must Be Processed Within One Business Day

BlockBeats News, June 8th, Hong Kong Secretary for Financial Services and the Treasury Christopher Hui mentioned in an interview yesterday that the underlying asset of stablecoins is fiat currency, which can be used as a payment method in electronic asset form through technologies such as blockchain in the future. The issuers of stablecoins are regulated by the Hong Kong Monetary Authority, and the regulatory principles are similar to traditional financial assets. Issuers must comply with regulations on reserve asset management, redemption, etc. This includes properly segregating customer assets so that when a stablecoin holder requests redemption, it must be completed within one working day to meet user demands.

Hui additionally noted that as stablecoins have payment characteristics, when there are services or projects being conducted in the "Belt and Road" region and the local currency has high exchange rate volatility or the financial system is not very mature, there is a certain risk if local currency is used for payment. In such cases, the counterparty can use stablecoins for payment purposes.