Paul Chan: We will carefully consider gold-backed stablecoins; cryptocurrencies are part of financial innovation.

PANews reported on January 10th that, according to the Hong Kong Commercial Daily, Hong Kong Financial Secretary Paul Chan Mo-po stated during a program appearance that virtual currencies 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 investment across the board, 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.