A few days ago, I listened to Dr. Xiao Feng's interview at Silicon Valley 101 and整理了一下 that blog. Dr. Xiao Feng is the chairman of Wanxiang Blockchain and also the chairman of HashKey.
This blog is very helpful for understanding the current situation of the stablecoin industry in China.
1⃣ Dr. Xiao Feng discovered an astonishing comparison:
🇨🇳 From the mainland perspective, stablecoins are viewed from the standpoint of major currency competition and dollar hegemony,
🇭🇰 whereas Hong Kong considers it from the perspective of anti-money laundering compliance risks.
What Hong Kong fears most is damage to its reputation, not missing opportunities.
2⃣ Currently, operating crypto in Hong Kong requires two sets of licenses:
Securities Ordinance requires a Type 7 license (ATS): and the anti-money laundering ordinance requires a VATP license.
This is why many exchanges closed their Hong Kong operations on June 1 last year; compliance costs are no joke.
3⃣ China's roadmap for accepting crypto
Based on observations from attending multiple internal seminars in Beijing, Dr. Xiao predicts:
Step 1: Stablecoins (currently under discussion)
Step 2: RWA (possibly next year)
Step 3: Bitcoin (in the future)
"Whether to launch the Huaihai Campaign has already been decided; the key is how to launch it."
4⃣ The three-stage evolution of RWA
Not all assets can be directly put on-chain!
Stage 1: Fiat currency tokenization (USDT)
Stage 2: Financial asset tokenization (BlackRock ETF)
Stage 3: Physical asset tokenization (oracle dilemma)
Gradual progress is the key.
5⃣ The dual challenges currently faced by China's stablecoins
External pressure: Europe and the U.S. worry that the RMB stablecoins may bypass sanctions.
Internal risk: rampant pyramid schemes may repeat the mistakes of the "internet finance rectification."
6⃣ Differentiated positioning of Hong Kong vs. Singapore
Singapore = Switzerland of Asia (stability, reputation)
Hong Kong = Wall Street of Asia (lively, trading)
The two have different positions and strategies; there's no need for zero-sum competition.
7⃣ China has unique advantages in blockchain
From the internet to AI to crypto, global innovation comes from China and the U.S.
40-50% of the U.S. crypto teams are Chinese!
Hong Kong + One Country, Two Systems + Common Law System = The perfect bridge connecting China and the U.S.
