Chairman of the Hong Kong Investment Committee: If stablecoins are widely accepted as a tool for cross-border remittances, it may reduce payment costs

ChainCatcher news, according to Hong Kong 01 report, the chairman of the Hong Kong Investor and Financial Education Committee (Investment Committee), Du Guankun, stated that the main use of stablecoins is as a cross-border remittance tool. If widely accepted by society in the future, it could reduce the cost of cross-border payments.

Stablecoins are related to virtual currencies, issued by private institutions, backed by mainstream fiat assets such as the US dollar, while using cryptocurrencies as collateral. Consequently, the volatility is quite high, and if there is insufficient understanding of the related products, one should not invest.