During the recent Bitcoin Asia summit held in Hong Kong, blockchain technology company Union's Chief Executive Officer Karel Kubat engaged in an in-depth discussion about Hong Kong's stablecoin policy advancement, market dynamics, and future directions. Karel believes Hong Kong is becoming an important indicator for global digital assets observation and is expected to lead industry direction in the future.
Hong Kong's Stablecoin Ordinance Approaches One Month Since Implementation: Global Stablecoin Demand Rising as Hong Kong Regulation Balances "Safety and Innovation"
On August 1st this year, Hong Kong's highly anticipated Stablecoin Ordinance officially took effect, with the core objective of establishing a licensing regime for fiat-referenced stablecoin issuers and filling regulatory gaps in virtual asset activities.
Karel believes that Hong Kong, as an important financial center in Asia, has entered a critical phase in its digital asset policy deployment. Observing Hong Kong market performance over the past month, although Hong Kong's stablecoin market overall database remains limited, from a global perspective, stablecoin demand has clearly shown an upward trend. Industry discussions about stablecoins in Hong Kong continue to heat up, which is believed to be inseparable from proactive guidance from regulators.
According to the Ordinance requirements, any entity issuing fiat-referenced stablecoins in Hong Kong business or issuing fiat-referenced stablecoins claiming to be pegged to Hong Kong dollar value must apply for a license from the Hong Kong Monetary Authority, while meeting strict compliance standards in reserve asset management, user redemption mechanisms, and other aspects. Karel believes this policy demonstrates Hong Kong taking substantive steps in digital asset regulation, capable of maintaining financial stability while preserving space for subsequent innovation.
Karel believes policy improvement follows "gradualism." Comparing with the US's relevant digital asset regulatory bills, Karel considers Hong Kong's Stablecoin Ordinance has obvious advantages, with strengths lying in Hong Kong's overall position of "neither excessive laissez-faire nor excessive tightening" - a middle ground. Karel emphasizes that the world has entered a stage of technological competition in the stablecoin field, and if any country or region adopts excessive regulatory measures, it could very likely miss development opportunities in competition. Hong Kong's policy core lies in "balance" - ensuring financial safety through compliance requirements while preserving space for enterprise innovation, an approach more aligned with digital asset industry development patterns.
Stablecoin Application Trends: Digital Currency Penetrates Credit Card Sector with "On-Chain Banking" as Future Direction
Observing global stablecoin adoption levels, Karel believes that stablecoin trading members in some countries include both individuals and institutions. The industry has currently shown positive signals, with many enterprises beginning to attempt using stablecoins for payments. Karel predicts that future banking services will gradually achieve full on-chain transformation "from conventional networks to electronic cards," supporting users in completing daily financial behaviors such as regular payments through stablecoins. This trend may reshape traditional financial service forms. Some institutions are beginning to attempt innovations in the credit card field, such as "Ethereum cards" and other products that already support individual users in completing repayment or deposit operations through digital currency transactions. This type of financial service model operating entirely on-chain could be the "future development direction of new banking."
Hong Kong Virtual Asset Development: Need to Ensure "User Benefits" and Expand "Payment Scenarios"
Regarding Hong Kong's virtual asset industry overall development, Karel frankly states it is "already very advanced," but to achieve widespread acceptance of stablecoins, two major efforts are still needed: first, attracting top global digital asset companies and professional talent to establish presence in Hong Kong, forming industrial clustering effects; second, addressing practical application pain points through dual approaches in technology and regulation.
Specifically, regulatory authorities need to focus on ensuring "stablecoin returns can be effectively transmitted to end users," which is a key decision factor for users choosing specific stablecoins. Simultaneously, there's a need to promote increased usage rates of stablecoins in payment scenarios. Only by connecting the "daily payment" link can large-scale popularization of stablecoins be achieved.