Techub News, according to the Hong Kong Wen Wei Po, co-founder of the Hong Kong fintech company IDA, and member of the third-generation Internet special task force of the Hong Kong Special Administrative Region, Zhu Chengyu, said that Stable Coin is a payment tool. Under the regulatory requirements of the Hong Kong ‘Stable Coin Ordinance’, all Stable Coins need to have a legal currency coin as a reserve. Therefore, the value of Stable Coin should not deviate significantly from the value of the legal currency coin behind it. The main application scenario of Stable Coin in Hong Kong is expected to be used as a tool for cross-border trade and investment Settlement. He also stated that IDA has always been actively involved in Stable Coin and intends to apply for the Hong Kong Stable Coin license. Zhu Chengyu stated that good Risk Management should be the top priority for Stable Coin issuance businesses, including ensuring the security of Blockchain technology, addressing risks that may arise in the financial market, and preventing criminals from engaging in Money Laundering through Stable Coins, in order to make the Stable Coin market sustainable.
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