The CEO of HashKey Group, one of the leading thinkers in the blockchain industry in Asia, presents his vision on the status of digital currencies, specifically stablecoins, in emerging Asian markets, especially Hong Kong.
Here are the key points from his statements and analysis:
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🧠 Key ideas and analyses from Dr. Xiao Feng
1. The gap between regulatory enthusiasm and reality
The market is very enthusiastic about stablecoins in Hong Kong.
However, regulators are exercising extreme caution, creating a gap between media hype and regulatory reality.
2. Stablecoins are not just payment tools
The majority believe that stablecoins were created for payments, but their primary purpose was to provide a stable trading medium for volatile digital assets.
Therefore, it represents a new financial infrastructure, not just a trading tool.
3. China is gradually returning to the digital currency scene
China's return to interacting with the crypto market will start through stablecoins.
And with increasing pressure from global cash competition, it may later move towards accepting Bitcoin as well.
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🔍 Blockchain: Not just tokens, but a new accounting system
Dr. Xiao believes that blockchain is a new accounting method, not just a system for issuing currencies.
It allows for direct and instant settlement between parties, reducing costs and enhancing efficiency.
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✅ The future of the industry depends on compliance and regulation
He emphasizes that the growth of the industry depends on compliance, especially regarding anti-money laundering (AML) laws.
He believes that crypto may outperform the traditional financial system in this regard, thanks to the transparency of on-chain transactions.
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🔑 Conditions for the success of stablecoins according to Xiao Feng
It must be built on public and decentralized (permissionless) blockchain networks.
Currencies built on closed and controlled networks (consortium chains) will fail due to the lack of transparency and openness.
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🌏 Hong Kong vs Singapore in the digital finance race
He believes that:
Hong Kong = Wall Street of Asia
Singapore = Switzerland of Asia
Hong Kong enjoys a flexible legal system and direct connections to global markets, making it a strong candidate to be a global crypto hub.
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🧩 Balance between decentralization and centralization
The core protocols must remain decentralized to ensure transparency and fairness.
As for the applications and services built on them, they must be centralized to achieve efficiency and protect users.
This balance is considered necessary and not a contradiction.
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✨ Conclusion
Dr. Xiao Feng does not see stablecoins merely as a speculative boom, but as a cornerstone for a new global financial infrastructure.
The future will shift from 'original' digital assets like Bitcoin to real digital assets (RWA) like stocks or real estate on the blockchain.
Whoever succeeds in combining regulatory compliance and decentralized innovation will lead the upcoming global digital economy.