Hong Kong Plans Cautious Approach to Stablecoins

3 mins mins

Key Points:

Hong Kong’s Budget set for February 25; surplus returns ahead of schedule.
Stablecoin developments to be gradual and cautious.
Hong Kong emphasizes infrastructure amidst capital account deficit.

Hong Kong’s Financial Secretary, Paul Chan, announced the FY Budget will be revealed on February 25, highlighting an operating surplus but a capital account deficit.

This fiscal stance indicates continuing infrastructure financing through bonds, impacting market dynamics, while careful consideration of a gold-linked stablecoin aligns with cautious regulatory development.

Hong Kong’s Financial Strategy Amid Surplus and Deficit

Paul Chan outlined Hong Kong’s financial position, noting an operating surplus due to enhanced financial-market revenues, including stamp duty. He acknowledged a continued capital account deficit resulting from public works spending, underscoring the government’s commitment to infrastructure development. Chan confirmed that any move toward introducing a gold-linked stablecoin would be approached cautiously and phased in gradually, reflecting the government’s careful handling due to potential market impacts. “The operating account has returned to surplus earlier than expected due to stronger financial-market-related revenues, including stamp duty,” said Paul Chan. Government reactions have been measured, with a commitment to leveraging market forces for infrastructure funding. Issuing bonds remains a strategic focus, further illustrating the government’s structured financial approach to current fiscal challenges.

Bitcoin (BTC), currently valued at $90,766.71 with a market cap of formatNumber(1813025881465, 2), holds a dominance of 58.39%. Over 24 hours, BTC rose by 0.39% but saw a decline of 21.00% over 90 days, as reported by CoinMarketCap. The Coincu research team notes that the gradual approach to stablecoin adoption reflects global trends prioritizing regulatory compliance. The commitment to cautious financial policy in Hong Kong may encourage greater institutional confidence and support long-term technological growth.

Stablecoin Caution Reflects Global Regulatory Trends

Did you know? In 2025, investment in Hong Kong’s infrastructure reached record highs, resulting in temporary deficits but promising sustainable economic growth.

bitcoin-daily-chart-5570 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 18:11 UTC on January 11, 2026. *Source: CoinMarketCap*

The Coincu research team notes that the gradual approach to stablecoin adoption reflects global trends prioritizing regulatory compliance. The commitment to cautious financial policy in Hong Kong may encourage greater institutional confidence and support long-term technological growth.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.