Hong Kong SFC Chairman: If stablecoins are widely accepted as cross-border remittance tools, payment costs may be reduced

According to ChainCatcher, citing a report from Hong Kong 01, Du Gankun, Chairman of the Investor and Financial Education Council (IFEC) of Hong Kong, stated that the primary use of stablecoins is as a tool for cross-border remittances. If stablecoins are widely accepted by society in the future, there is a chance they could reduce the cost of cross-border payments.

Stablecoins are related to virtual currencies and are issued by private institutions, backed by mainstream fiat assets such as the US dollar. When backed by cryptocurrencies as collateral, the corresponding volatility is very high. Therefore, if one does not have sufficient understanding of these products, investment is not recommended.