"China Begins Re-Entry into the Virtual Asset Market…The First Step Is Stablecoins"

There is a forecast that China will re-enter the virtual asset (cryptocurrency) market, beginning with stablecoins (virtual assets pegged to fiat currencies).

According to BeInCrypto, a media outlet specializing in virtual assets, on the 4th (KST), Xiao Feng, Chairman and CEO of HashKey Group, recently stated in an interview, "Mainland China is seeking to re-participate in the virtual asset market, which will begin with stablecoins," and added, "The pressure of global currency competition is driving these changes."

Chairman Xiao Feng defined blockchain not simply as a payment method, but as a new accounting infrastructure. He emphasized, "Stablecoins are not payment tools; they are the underlying technology that enables a real-time P2P financial system," and added, "They can only succeed on public blockchains."

He continued, "Recently, expectations for stablecoins in the Hong Kong market have risen, but regulators remain cautious," and assessed, "There is a significant gap between the market and regulation."

However, he stated that as Hong Kong is focusing on anti-money laundering (AML), it is well-positioned to emerge as a center of digital finance. Chairman Xiao Feng also added, "On-chain transactions offer greater traceability, so they may be superior to traditional finance in terms of AML."

"The Next Step Is RWA... Hong Kong Is Asia’s Wall Street"

Meanwhile, Chairman Xiao Feng predicted that after stablecoins, the market could be reshaped around RWAs (Real World Assets, tokenization of physical assets). He remarked, "We are shifting from digital native assets to an era of digital twin assets," and pointed out, "For this, regulated onshore exchanges are necessary."

He concluded by saying, "Hong Kong, under the 'one country, two systems' policy, retains the Anglo-American legal system and serves as a bridge connecting China with the world," and added, "Hong Kong is destined to become the Wall Street of Asia, whereas Singapore is closer to the Switzerland of Asia."