Paul Chan: We will carefully consider gold-backed stablecoins; cryptocurrencies are part of financial innovation.
TL;DR
Hong Kong Financial Secretary Paul Chan acknowledges cryptocurrencies as financial innovation but warns of risks like investor protection and money laundering. He advocates cautious regulation and public education, and will consider gold-backed stablecoins after initial steps.
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According to ChainCatcher, citing the Hong Kong Commercial Daily, Hong Kong Financial Secretary Paul Chan Mo-po stated during a program appearance that cryptocurrencies are part of financial innovation and Hong Kong should embrace them. However, the confidentiality of blockchain technology may lead to insufficient investor protection, impact anti-money laundering efforts, and threats to financial stability. He emphasized that the government must handle this cautiously, incorporating it into an appropriate regulatory framework, and expressed reservations about promoting the investment to the public, believing that public education should be strengthened.
In addition, in response to suggestions from the audience to launch a stablecoin pegged to gold, Paul Chan said that stablecoins will be developed gradually. After completing the first step, suggestions to peg to gold or other assets will be considered, but he stressed that this needs to be handled with caution.