Hong Kong Treasury Bureau's Xu Zhengyu: Redemption requests from stablecoin holders must be completed within one working day.

On June 8, Hong Kong’s Secretary for Financial Services and the Treasury, Christopher Hui, stated in an interview that the underlying asset of stablecoins is fiat currency, which can later be used for payment functions in the form of electronic assets through technologies such as Blockchain. Hui mentioned that stablecoin issuers are regulated by the Hong Kong Monetary Authority, and the overarching principles of regulation are similar to those of TradFi assets. Relevant issuers must comply with regulations regarding reserve asset management and redemption, including properly segregating customer assets. When a stablecoin holder requests redemption, it must be completed within one working day to meet user requirements. Hui also added that due to the payment characteristics of stablecoins, when services or projects are conducted in the “Belt and Road” regions where local currency Exchange Rates fluctuate significantly or the financial system is not very mature, using local currency for payment can pose certain risks; in such cases, the counterparties can use stablecoins for payment purposes.