Future development under the ordinance could help Hong Kong rebuild its role in expediting trade and exports between mainland China and global markets, said Michael Chan.
“The city’s traditional re-export role for mainland China has been diminishing as direct trade through mainland ports grows,” said the Hong Kong-born graduate of City University of Hong Kong. “But its role as the middleman in the digital trade-finance segment could be revitalised.”
“A stablecoin is more time and cost effective [than traditional currency], as a reliable corridor with greater transparency, plus programmability features, such as automation of conditional payments and escrow, integrated compliance checks and real-time [foreign exchange] rates.”
Chan joined Zand as CEO in November 2022 and led the bank to break even in just 22 months. Zand also became one of the youngest banks to achieve an investment-grade rating from Fitch Ratings, a BBB+. The bank has also obtained in-principle approval from the central bank of the UAE to offer a dirham stablecoin.
Some players have described the regime’s upfront capital requirement of HK$25 million (US$3.2 million) as a barrier for smaller firms.
