Xiao Feng: The Unique Advantages of Chinese Entrepreneurs in the Stablecoin Economy (Complete Version of Xiao Feng's Discussion on Stablecoins and Blockchain, 12,000 Words)

• "Legislation promoting the tokenization of fiat currency is an unprecedented event in the history of world currency, which will inevitably trigger a series of complex economic and financial reactions."
• "The evolution of human society is inseparable from the changes in three elements: material, energy, and information. Every industrial revolution is a synchronous revolution of these three; and financial revolutions often lead the way. The blockchain you see now is a new generation of financial system supporting the Fourth Industrial Revolution. Unlike before, this time the U.S. and China are jointly leading."
• "Chinese entrepreneurs have not only opportunities but also unique advantages in this wave of stablecoin economy and RWA… Many leading global projects are backed by the code, algorithms, and infrastructure of Chinese engineers. The future stablecoin economy will not be a single structure, but a multi-layered, multi-regional global network with spectrum and granularity. For Chinese entrepreneurs, this is a new 'digital going abroad.' With the enterprising spirit and vigor of Chinese entrepreneurs, these markets will become our home ground."
• "Web3 and AI are two sides of the same coin, and they will ultimately come together. AI and blockchain together form the infrastructure of a new generation of wealth distribution systems. We firmly believe that the deep integration of AI and blockchain will happen, and we are actively looking for entrepreneurial projects with practical implementation capabilities, not just creating a chain, issuing a token, or slapping an AI label on it, but solving real problems and doing real engineering… I know many entrepreneurs are making similar attempts, and I welcome everyone to discuss together."

Xiao Feng, Chairman of HashKey Group, recently commented on the significant progress in stablecoin legislation across multiple regions globally and the market opportunities it brings.

On May 19, the U.S. Senate passed the "GENIUS Stablecoin Act" (also known as the "Genius Act"). It is understood that Trump has explicitly requested Congress to pass legislation related to U.S. dollar stablecoins by August 2025.

The Hong Kong Legislative Council passed the "Stablecoin Regulation Bill" on May 21, which is expected to officially take effect on August 1. At that time, the Hong Kong Monetary Authority (hereinafter referred to as "HKMA") will begin accepting license applications.

This also means that Hong Kong has gained a certain first-mover advantage in the global stablecoin regulatory competition, being the first to implement a licensing system for fiat stablecoin issuers and improve the regulatory framework for related virtual asset activities.

Hong Kong Legislative Council passes the "Stablecoin Regulation Bill"

The acceleration of Hong Kong's regulatory system is believed to be related to multiple internal and external factors. For example, according to the relevant information released by the Hong Kong Legislative Council, "It is noted that stablecoins claim to maintain a relatively stable value with certain traditional financial assets and may develop into widely accepted payment mediums, thus integrating into the mainstream financial system. Among them, fiat stablecoins may bring more urgent risks compared to other types of stablecoins, hence the government authorities believe there is a need to establish a regulatory system for fiat stablecoin issuers, regulating them in a risk-based and flexible manner." (Source: "Hong Kong's Stablecoin Ecosystem Construction Accelerates," May 26, 2025, Jiao Jian, "Finance" Magazine)

In the past year, the HKMA has seen several important milestones in the preparation for stablecoin legislation: In March 2024, it launched a "sandbox arrangement" for stablecoin issuers; in July 2024, the Hong Kong SAR government announced the first batch of participants in the stablecoin issuance "sandbox" program; and in December 2024, it announced the legislative initiative for the stablecoin bill.

As early as April 2024, Xiao Feng, Chairman and CEO of HashKey Group, was invited to the "Quanguo Wuxian Dialogue" to discuss the underlying logic and long-term development path of blockchain and crypto assets in a closed-door sharing session.

Xiao Feng holds a Ph.D. in Economics from Nankai University and is a Chinese leader in the global blockchain field. He founded Bosera Funds in his early years, later delving into the fintech sector, joining Wanxiang Holdings, and over a decade ago, becoming an early investor in Ethereum founder Vitalik Buterin. This legendary experience spanning traditional finance and cutting-edge technology is quite rare. Based on this, Xiao Feng has an unparalleled deep understanding of blockchain technology, as well as a masterful grasp of policy coordination.

In 2018, Xiao Feng officially established HashKey Group, and now HashKey Exchange has become one of the first licensed retail virtual asset exchanges in Hong Kong.

HashKey Group

Since the passage of the Hong Kong "Stablecoin Bill" in May, the heat, dimensions, and depth of discussions about stablecoins have been gradually increasing, and it is expected that by August 1, when the bill is officially implemented, the heat will reach a peak. Many industry insiders believe that the passage of the Hong Kong stablecoin bill marks a key point, and a new consensus is forming------the blockchain field is about to welcome a golden window period for entrepreneurial innovation, and for a period of time, its energy intensity may even surpass that of AI.

Xiao Feng mentioned, "Now when everyone discusses blockchain and stablecoins, there is too much macro discussion, but very little micro discussion. The primary driving force behind the development of stablecoins has always been technological innovation, which creates value for ordinary users and consumers";

He also emphasized, "The blockchain industry has already transitioned from the infrastructure stage to the second growth curve------the application stage; the new opportunity lies in who can build truly problem-solving applications on this distributed ledger system."

This issue of "Quanguo Wuxian Dialogue" revisits Dr. Xiao Feng's closed-door sharing session at Quanguo Fund in April 2024 and recent public interview content, aiming to cover most of Xiao Feng's core viewpoints on blockchain. With Dr. Xiao Feng's consent, the original transcript is selected as follows:

If you are short on time, you can first browse the following core viewpoints in 3 minutes, and then read in a targeted manner:

【1】Legislation promoting the tokenization of fiat currency is an unprecedented event in the history of world currency, which will inevitably trigger a series of complex economic and financial reactions. No one can fully foresee its consequences, not even the President and Congress of the United States.

【2】The United States openly acknowledges that one of the important purposes of promoting stablecoin legislation is to consolidate and enhance the status of the U.S. dollar, and from the Senate's voting, this is a bipartisan consensus; they also know they are making history. In this context, the legislative authorities in Hong Kong have demonstrated flexibility and efficiency by passing the stablecoin regulations in three readings, which is commendable.

【3】Now when we discuss blockchain and stablecoins, there is too much macro discussion, but very little micro discussion. Many of us forget that the primary driving force behind the development of stablecoins has always been technological innovation, which creates value for ordinary users and consumers. The reason stablecoins have such a strong impact lies in the series of technological advantages granted to them by blockchain. I have been talking about these points for ten years, but it is still not enough; at this moment, it is necessary to reiterate them.

【4】I have heard that the New York Stock Exchange plans to launch 5×23 hour trading, and Nasdaq plans to launch 5×24 hour trading; I suspect they will use blockchain technology internally. Once implemented, investors worldwide can trade U.S. assets continuously using U.S. dollar stablecoins, which is self-evident in its significance for investors.

【5】Many people view blockchain as a formidable beast, one important reason being the lack of a deep understanding of the inherent advancement and inevitability of blockchain technology itself. When we conduct payments and transactions on blockchain, it operates continuously around the clock. How is this possible? It is because transactions are settled one by one on a global ledger, allowing for uninterrupted clearing and settlement. 【6】The fundamental starting point for promoting stablecoins is to align with the trend of technological development and to promote the modernization of payment and financial infrastructure. All considerations are based on the fundamental fact that blockchain, as a new generation of financial infrastructure, has overwhelming technological advantages.

【7】The evolution of human society is inseparable from the changes in three elements: material, energy, and information. Every industrial revolution is a synchronous revolution of these three; and financial revolutions often lead the way. The blockchain you see now is a new generation of financial system supporting the Fourth Industrial Revolution. Unlike before, this time the U.S. and China are jointly leading.

【8】Hong Kong's transformation into a new virtual asset financial center has its unique historical genes and advantages… The past decade has been a critical window period for Hong Kong to build an international financial center 2.0------an international virtual asset trading center, upgrading the traditional financial capital to a virtual asset capital.

【9】In the coming years, stablecoins will drive a massive explosion of blockchain and RWA (real-world asset tokenization) applications. Stablecoins are becoming the bridge for the blockchain industry to cross the "chasm." In the coming years, stablecoins will drive a massive explosion of blockchain and RWA applications, and stablecoins and blockchain will become the most attractive tracks with the most success stories in the coming years.

【10】Stablecoins will become the first blockchain product to be widely adopted by "pragmatists." Cross-border e-commerce, freelancers, platform settlements, and global payments are all starting to use them. It allows blockchain to finally exist not just as a narrative but as infrastructure integrated into the real economic system. 【11】Chinese entrepreneurs have not only opportunities but also unique advantages in this wave of stablecoin economy and RWA… Many leading global projects are backed by the code, algorithms, and infrastructure of Chinese engineers. The future stablecoin economy will not be a single structure, but a multi-layered, multi-regional global network with spectrum and granularity. For Chinese entrepreneurs, this is a new "digital going abroad." With the enterprising spirit and vigor of Chinese entrepreneurs, these markets will become our home ground.

【12】This wave is global; you must go out, fight in the storm, and seize positions where rules are being formulated.

【13】The rules of the game in the industry have changed; the previous path of getting rich by just issuing a token is no longer viable. Now is an era of competing for real user value and application capabilities. For every product you create and every model you design, you must ask: Does it truly solve user problems? Does it create new efficiencies? Only projects that genuinely create value for users will be retained by this era.

【14】Not only should you learn technology and compliance, but also new ideas and new institutional frameworks. You cannot use Web2 thinking to do Web3 things, nor can you use the mindset of issuing tokens to speculate in the era of stablecoins and RWA. Behind this is a whole new paradigm that requires continuous learning and breaking through oneself.

【15】Web3 and AI are two sides of the same coin, and they will ultimately come together. AI and blockchain together form the infrastructure of a new generation of wealth distribution systems. I have been looking for truly valuable AI + Crypto projects. It is not just about creating a chain, issuing a token, or slapping an AI label on it; it is about solving real problems and doing real engineering.

The following are highlights of Xiao Feng's core viewpoints:

1: Now when we discuss blockchain and stablecoins, there is too much macro discussion, but very little micro discussion. Many of us forget that the primary driving force behind the development of stablecoins has always been technological innovation, which creates value for ordinary users and consumers. The reason stablecoins have such a strong impact lies in the series of technological advantages granted to them by blockchain. I have been talking about these points for ten years, but it is still not enough; at this moment, it is necessary to reiterate them.

On May 19, the U.S. Senate passed the "GENIUS Stablecoin Act" (also known as the "Genius Act").

Not long ago, I communicated with a blockchain policy advisor to the U.S. President, who very straightforwardly told me that the national reserve of Bitcoin is second for the U.S., the U.S. dollar stablecoin is the first, and it is a core interest of the United States. From what I understand, the goal of President Trump’s team is to ensure the passage of the GENIUS Act before Congress goes on recess in August, and it seems it may happen even sooner.

The U.S. President's team and Congress are quite frank about the motivations behind stablecoin legislation; they openly state that the first is to modernize the U.S. payment and financial system, and the second is to consolidate and enhance the status of the U.S. dollar, creating trillions of dollars in demand for U.S. Treasury bonds in the coming years.

The U.S. openly acknowledges that one of the important purposes of promoting stablecoin legislation is to consolidate and enhance the status of the U.S. dollar, and from the Senate's voting, this is a bipartisan consensus; they also know they are making history. In this context, the legislative authorities in Hong Kong have demonstrated flexibility and efficiency by passing the stablecoin regulations in three readings, which is commendable.

The previous U.S. government, especially experts like former SEC Chairman Gensler, understood blockchain, but why has it been entangled for so many years? It is simply because they are reluctant to let go of the existing payment network, including SWIFT, and the financial governance, regulation, and anti-money laundering mechanisms built on this network.

However, the progress of blockchain technology in recent years, especially the financial sanctions against Russia after the Russia-Ukraine war, has shown that the technological advantages of blockchain are undeniable. Therefore, the entire financial infrastructure is moving towards blockchain, just like the transition from steam engines to electrification; no force can stop it. However, I have a judgment that although Trump's team and the U.S. Congress have a deep understanding of U.S. dollar stablecoins, they may not fully imagine the long-term impact of this matter. From this perspective, will promoting the GENIUS Act be as repetitive as his trade war policy? It remains to be seen.

Legislation promoting the tokenization of fiat currency is an unprecedented event in the history of world currency, which will inevitably trigger a series of complex economic and financial reactions. No one can fully foresee its consequences, not even the President and Congress of the United States.

According to the GENIUS Act, institutions outside the U.S. can also issue U.S. dollar stablecoins, but they must be based on U.S. dollar fiat assets, registered in the U.S., subject to the supervision of relevant U.S. institutions, comply with U.S. laws, and respond to the commands of U.S. law enforcement authorities at any time. These requirements are very high, but they are under the condition of "legal circulation in the U.S. market."

If they do not enter the U.S. market and do not interact with Americans and U.S. entities, then even these conditions can be relaxed. As a result, in the future, there will be two systems of onshore and offshore U.S. dollar stablecoins, similar to today's U.S. dollar and Eurodollar systems. Among them, onshore dollars are relatively strict and consistent, while the offshore dollar ecosystem will be more complex, with dozens or even hundreds of digital currencies called "U.S. dollar stablecoins" circulating, mapping, exchanging, and interacting across dozens of public chains and hundreds of private chains, producing complex effects that no one has seen before and no one can foresee.

At a time when trade frictions lead to "de-globalization," a trend of "dollarization" in the global digital economy emerges, and as AI advances rapidly, the "value internet" suddenly accelerates. The complex reactions of these economic and technological trends exceed everyone's predictive capabilities. We are entering a period of ecological explosion in the digital economy, and we will soon see many new digital economic phenomena and business species.

At this stage, discussions on this issue are still very insufficient. We must understand that blockchain stablecoins are meant to naturally attract and bind more real economic activities under a framework of higher efficiency, lower costs, and fewer links. Its expansion is based on technological advantages, relying on efficiency, institutional design, technological advantages, and network effects. We acknowledge its disruptive innovation characteristics, but what attitude should we adopt towards it?

My attitude has been consistent and unchanged for ten years. In the face of a technology like blockchain, we should go with the flow and develop our stablecoin ecosystem in an open, compliant, and trustworthy manner, securing a place in the new generation of financial networks. Some talk about currency sovereignty and financial sovereignty; I want to say that in the face of disruptive technological innovation, actively responding is the truly responsible attitude towards sovereignty.

Now when we discuss blockchain and stablecoins, there is too much macro discussion, often starting with monetary systems, dollar hegemony, and financial wars, but very little micro discussion. Many of us forget that the primary driving force behind the development of stablecoins has always been technological innovation, which creates value for ordinary users and consumers. The reason stablecoins have such a strong impact lies in the series of technological advantages granted to them by blockchain. I have been talking about these points for ten years, but it is still not enough; at this moment, it is necessary to reiterate them, and we must make everyone understand that blockchain technology has tremendous superiority, and its fundamental technological advantages are reflected in four aspects: accounts, ledgers, accounting methods, and accounting units.

A simple way to judge whether a new technology has overwhelming advantages is to look at how many times efficiency has improved and how much costs have decreased. A tenfold advantage means an upgrade; if it is a hundredfold or thousandfold advantage, then it is unstoppable.

Many people view blockchain as a formidable beast, one important reason being the lack of a deep understanding of the inherent advancement and inevitability of blockchain technology itself. Let me give another example. In traditional trading systems, it is very difficult to achieve uninterrupted operation 7x24 hours. Now some leading stock trading systems are seeking to extend trading hours; some have already planned for 5x23, trading five days a week for 23 hours each day, but they still need to pause for an hour each day because the traditional clearing and settlement system requires a time point to pause, net, and settle.

But when we conduct payments and transactions on blockchain, it operates continuously around the clock. How is this possible? It is because, as mentioned earlier, it is settled one by one on a global ledger, allowing for uninterrupted clearing and settlement.

I have heard that the New York Stock Exchange plans to launch 5×23 hour trading, and Nasdaq plans to launch 5×24 hour trading; I suspect they will use blockchain technology internally. Once implemented, investors worldwide can trade U.S. assets continuously using U.S. dollar stablecoins, which is self-evident in its significance for investors and U.S. businesses. So you see, these discussions at the macro strategic level ultimately need to be built on technological innovation.

The basic technological facts point to a simpler conclusion------the fundamental starting point for promoting stablecoins is to align with the trend of technological development and to promote the modernization of payment and financial infrastructure. All considerations are based on the fundamental fact that blockchain, as a new generation of financial infrastructure, has overwhelming technological advantages.

Therefore, I am very excited about the early passage of the Hong Kong stablecoin bill; this is the correct response posture.

2: The evolution of human society is inseparable from the changes in three elements: material, energy, and information. Every industrial revolution is a synchronous revolution of these three; and financial revolutions often lead the way. The blockchain you see now is a new generation of financial system supporting the Fourth Industrial Revolution. Unlike before, this time the U.S. and China are jointly leading. I also want to share the source of my "faith" in blockchain. I have recently been quoting a line from Nobel laureate in economics John Hicks: "The industrial revolution had to wait for a financial revolution."

The evolution of human society is inseparable from the changes in three elements: material, energy, and information. Every industrial revolution is a synchronous revolution of these three; and financial revolutions often lead the way.

First Industrial Revolution: The steam engine, accompanied by the emergence of the banking lending system;

Second Industrial Revolution: Electrification, accompanied by the capital market and joint-stock company system;

Third Industrial Revolution: The internet revolution, with China inserting itself in the middle;

Fourth Industrial Revolution: AI + blockchain, this time the U.S. and China are jointly leading.

The blockchain you see now is a new generation of financial system supporting the Fourth Industrial Revolution. As mentioned earlier, behind the industrial revolution, financial revolutions often lead the way. Next, let's look at the evolution stages of the financial revolutions accompanying the four industrial revolutions:

First Industrial Revolution: Led by banks, credit and bonds are the main financing axes, with no capital markets yet;

Second Industrial Revolution: Led by the U.S. capital markets, investment banks, Wall Street, Morgan Stanley, Goldman Sachs, etc., rose to support the wave of electrification;

Third Industrial Revolution: The birth of venture capital (VC) in the 1960s, the rise of Silicon Valley;

Today, the Fourth Industrial Revolution, the financial revolution of the digital age, is based on distributed ledgers and encrypted capital. Denying this makes it difficult to keep pace with the forefront of the digital age. Why? Because blockchain is a new accounting system, payment settlement system, and global ledger system. The digital world transcends space, time, organization, and jurisdiction, requiring a new registration, accounting, and settlement system, which traditional finance cannot meet. In the more than 5,000 years of human society with written records, there have been three major changes in accounting methods. The changes in accounting methods are closely related to the economic activity patterns of human society:

【1】Single-entry bookkeeping

The earliest single-entry bookkeeping was discovered in Sumer, dating back to around 3500 BC. Single-entry bookkeeping only records income and expenditure; in China, we call it "running accounts," and to understand profit and loss, regular inventory is needed.

【2】Double-entry bookkeeping after the Renaissance (still in use today)

Later, cross-border maritime trade emerged in the Mediterranean region, making trade cycles and structures more complex, involving borrowing, partnerships, taxes, etc. These demands together called for a new accounting method------In 1300 AD, city-states in northern Italy began to adopt double-entry bookkeeping, which not only records income and expenditure but also assets and liabilities.

However, double-entry bookkeeping is still recorded in private ledgers.

With the digital survival of human society that began in the last century, the proportion of the digital economy has become increasingly large, and economic activities that cross time, space, organization, and jurisdiction require a new accounting method. 【3】The emergence of distributed ledger systems in 2009

The blockchain technology and distributed ledger (DLT) that emerged in 2009 provide a new accounting method for the digital economy------from the first principles, blockchain is essentially a change in accounting methods, establishing a public, transparent, decentralized global public ledger------everyone records on one ledger, and people around the world jointly witness the recording process, thus achieving true, comprehensive, and timely accounting.

The emergence of new accounting methods has also given rise to a new account system------from traditional bank account systems and internet account systems to the now broadly termed blockchain account systems.

The value capture tool within this account is the Token (crypto asset). Under the current global legal framework, functional Tokens are defined as virtual goods; the real assets behind security Tokens are securities, just like Bitcoin is not a security, but a Bitcoin ETF is a security. The underlying asset may not necessarily be a security, but its derivatives are securities. Payment Tokens are used for payment settlement, with stablecoins being a typical representative. Its exchange rate is generally pegged 1:1 to fiat currency, making it very suitable for payment settlement. Stablecoins are designed with models to ensure their price remains relatively stable and with low volatility, thus serving functions such as asset hedging, payment settlement, and value storage in the highly volatile cryptocurrency market.

The financial revolution of the digital age is based on distributed ledgers and encrypted capital, providing financial support for technological innovation. Unlike before, this time the U.S. and China are jointly leading.

3: The third accounting revolution has already taken us from bank accounts to the era of crypto accounts. The regulatory framework for stablecoins has landed, bringing significant development space for application scenarios. The application of stablecoins in cross-border trade is a very typical example.In this regard, China is one of the biggest beneficiaries.

This third accounting revolution has already taken us from bank accounts to the era of crypto accounts. The regulatory framework for stablecoins has landed, bringing significant development space for application scenarios.

The application of stablecoins in cross-border trade is a very typical example.

In this regard, China is one of the biggest beneficiaries.

In 2024, the total payment and settlement amount based on stablecoins reached $16.16 trillion, surpassing the total of VISA and Mastercard, completely bypassing the traditional banking system and SWIFT network.

Traditional cross-border payments are cumbersome and complex, involving multiple intermediaries, resulting in high transaction costs.

For example, an American consumer orders a $50 T-shirt online and wants to receive it within a week; the process of payment and shipping must work together. The "payment" actually includes three major steps: payment, clearing, and settlement------swiping a bank card first verifies whether the account has a balance; clearing: if there is a balance, the payment amount is frozen; settlement: the actual transfer of funds between different banks or accounts is completed at a unified time. In cross-border payments, the payment process is even more cumbersome: if you open an account at a traditional financial institution to remit money to the U.S., in most cases, at least five intermediaries must be involved: your account bank, a dollar remittance bank, a SWIFT, a receiving bank in the U.S., and finally back to the account bank in the U.S. Private ledgers require information alignment, which cannot be done in less than two weeks. The characteristics of stablecoins determine that they are very suitable for payment and settlement. The price anchoring mechanism of stablecoins and their on-chain real-time settlement capabilities have made them ideal tools for cross-border payments.

Therefore, we see that many small commodity merchants in Yiwu have already become users of stablecoins. Through stablecoins, they achieve trustless and efficient peer-to-peer transactions without needing traditional clearing and settlement systems, bypassing SWIFT. Ideally, funds can arrive in seconds ------ seconds to arrive, seconds to prepare goods, and air freight delivered in a week, solving trust and efficiency issues in just a second. In our cross-border trade, an increasing number of payment settlements have shifted to this new system, helping products sell globally. Cross-border e-commerce is transitioning from B2B and B2C to C2C. Customers are no longer foreign trade companies but individual global consumers.

In 2023, China sent out a total of 18 billion packages.

So, if there were no blockchain settlement systems based on USDT, many Chinese merchants would suffer losses. However, previously constrained by a lack of regulation, related enterprises have always faced uncertainties in compliance, safety, and risk control, limiting the large-scale practical application of stablecoins in cross-border trade.

The passage of Hong Kong's legislation has largely addressed these negative externalities.

Why is Hong Kong promoting stablecoin legislation? Because it realizes that it must actively embrace the new payment system and cannot be left out of the competition for the global trade settlement center.

4: Hong Kong's transformation into a new virtual asset financial center has its unique historical genes and advantages… The past decade has been a critical window period for Hong Kong to build an international financial center 2.0------an international virtual asset trading center, upgrading the traditional financial capital to a virtual asset capital.

First, it is a free port for capital.

Second, as a traditional international financial center and offshore RMB business hub, Hong Kong has a unique position connecting Chinese and Western financial markets. Launching regulated stablecoins serves both the local digital economy and acts as a digital bridge between RMB and USD.

Third, the construction of Hong Kong's international financial center in the past relied on two legs: one was banking services, mainly serving trade and shipping; the other was the capital market. The growth of banking services is slowing down, and the performance of the capital market is also not good, so Hong Kong needs to find new growth points, and this counterattack growth point is likely to be the front store and back factory of the digital age and the transshipment trade of virtual goods.

Fourth, historical genes. Since the 1980s, Hong Kong has actually thrived on the front store and back factory of industrial enterprises and transshipment trade. The characteristics of Web3, which transcend time, space, organization, and jurisdiction, make geographical location less important. Hong Kong can position itself as the front store and back factory of the digital age, facilitating the transshipment trade of virtual goods. The past decade has been a critical window period for Hong Kong to build an international financial center 2.0------an international virtual asset trading center, upgrading the traditional financial capital to a virtual asset capital. One particularly unique aspect of the Hong Kong "Stablecoin Regulation Bill" is that------unlike the EU's MiCA framework of "functional regulation," and different from Singapore's "tiered licensing" system, it innovatively adopts the "value anchoring regulation" principle------related stablecoins, as long as they involve claims of value in Hong Kong dollars, regardless of the issuer's location, meaning that no matter where you issue stablecoins, as long as they are pegged to the Hong Kong dollar, they will fall under the regulatory scope. This achieves an extension of judicial jurisdiction over cross-border stablecoin activities.

This institutional design may allow Hong Kong to gain an advantage in the global stablecoin regulatory competition.

5: Stablecoins are becoming the bridge for the blockchain industry to cross the "chasm." In the coming years, stablecoins will drive a massive explosion of blockchain and RWA applications, and stablecoins and blockchain will become the most attractive tracks with the most success stories in the coming years.

In the coming years, stablecoins will drive a massive explosion of blockchain and RWA (real-world asset tokenization) applications. On the demand side, billions of users will open crypto accounts on-chain and hold stablecoins, with user scale growing several times in a short period. Meanwhile, on the supply side, millions of platforms, enterprises, internet merchants, self-media, and creators will begin to accept stablecoin payments, and a large number of assets will be tokenized, going on-chain to become RWA. "How to earn stablecoins" will become one of the most concerning topics for all enterprises in the coming years.

RWA will inevitably grow very large. Recently, Boston Consulting Group released a report predicting that by 2033, the total scale of on-chain RWA assets will reach $18.9 trillion, which means that in the next eight years, the annual growth rate of RWA will reach 53%. Any entrepreneur would not want to miss the opportunity to board this rocket. The various application demands surrounding stablecoins and RWA will rapidly explode, and truly capable entrepreneurs will put aside hesitation and modesty and flock to it. Stablecoins and blockchain will become the most attractive tracks with the most success stories in the coming years. Here, I would like to quote a model from a classic business book to explain this phenomenon: Geoffrey Moore's "Technology Adoption Life Cycle" in "Crossing the Chasm." The book points out that the user growth path of all high-tech products can be divided into five stages:

Stage 1: Technology Enthusiasts: Products are created by technology enthusiasts. For example, Satoshi Nakamoto and Vitalik Buterin created Bitcoin and Ethereum from scratch.

Stage 2: Early Adopters: Early users do not pursue immediate practical applications but are passionate about new technologies. For instance, in 2015, when Vitalik came to Shanghai, despite Ethereum's mainnet not yet being launched, Wanxiang Blockchain still invested $500,000 in it.

Stage 3: Pragmatists: Mainstream users begin to focus on whether the technology can truly bring value and solve real problems. This is the critical "chasm" period for product survival, where 80% of projects fail at this stage.

Stage 4: Late Majority: They only follow suit after seeing others benefit, making up the majority of the user base. This stage has a lower threshold, but the prerequisite is to cross the "pragmatist chasm."

Stage 5: Laggards: The "traditionalists" who always reject new technologies. They prefer stable, nostalgic lifestyles and do not accept new things, and there is no need to force conversion. I believe stablecoins are becoming the bridge for the blockchain industry to cross this "chasm." Previously, when we talked about crypto and Web3, we always stayed within the small circles of "believers" and "technology enthusiasts." Many people agree with the concept, but when it comes to large-scale use, problems arise such as "unable to find landing scenarios," "users do not understand," and "high compliance risks." Stablecoins will become the first blockchain product to be widely adopted by "pragmatists." Cross-border e-commerce, freelancers, platform settlements, and global payments are all starting to use them, allowing blockchain to finally exist not just as a narrative but as infrastructure integrated into the real economic system. However, this does not mean that simply slapping an RWA label will lead to success. From the development of the crypto industry over the past decade, we have learned that development must follow objective laws and be based on value. Objectively speaking, bubbles are inevitable, but if the bubble is too large, it will always burst, which will hinder the development of the industry.

6: Chinese entrepreneurs have not only opportunities but also unique advantages in this wave of stablecoin economy and RWA… Many leading global projects are backed by the code, algorithms, and infrastructure of Chinese engineers.

The geopolitical competition between China and the U.S. will indeed affect the entrepreneurial environment, especially in highly sensitive fields like technology and finance. However, history is never a linear progression, and reality is often more complex and tense than public opinion suggests. Despite the friction, I still confidently say that Chinese entrepreneurs have not only opportunities but also unique advantages in this wave of stablecoin economy and RWA.

【1】Huge existing advantages: Even now, China remains one of the regions with the most blockchain developers, the highest quality of innovation and engineering, and the most active community activities. In fact, many leading global projects are backed by the code, algorithms, and infrastructure of Chinese engineers.

In an interview with Vitalik, I bluntly suggested to the Ethereum Foundation: "Ethereum has fallen to this point because you lost China." From 2014 to 2016, China was the most solid base of Ethereum developers and users. Later, for various reasons, Ethereum became absent from China, which is an important reason for its loss of momentum. This applies to any global blockchain project; whoever gains the Chinese developers and community will gain the world.

【2】Highly aligned real interests: The stablecoin economy and RWA represent a brand new globalized channel in the digital economy era. What does it mean for China? It means we can bypass the traditional U.S. dollar settlement system and centralized platforms, using new methods to export Chinese goods, services, and content. This not only creates jobs, stimulates growth, and fosters innovation but also establishes China's competitiveness in the Web3 world. In other words, this is a new "digital going abroad."

【3】The new system itself is diverse: The future stablecoin economy will not be a single structure but a multi-layered, multi-regional global network.** These regions have large innovation spaces and more flexible rules, and with the enterprising spirit and vigor of Chinese entrepreneurs, these markets will become our home ground.

【4】Irreversible trends: Once the U.S. breaks the deadlock, other major economies will inevitably follow suit. In China, Hong Kong has already taken the lead by passing the "Stablecoin Regulation." I believe we will eventually start discussing whether to develop offshore RMB stablecoins. I think this is a very serious strategic issue worth discussing. If we can promote it, then in these non-U.S. dollar stablecoin ecosystems, Chinese entrepreneurs will have greater dominance and voice.

【5】China will eventually embrace the tide of blockchain and digital assets, which is my consistent long-term judgment: We are a country known for pragmatism; as long as something can promote development, serve the real economy, and create benefits, it will ultimately be accepted. Once opened up, with China's market size and entrepreneurial density, combined with the hardworking and pragmatic nature of the Chinese people, blockchain will definitely experience explosive growth in China, becoming the most prosperous land of innovation globally. Therefore, for Chinese entrepreneurs, do not miss the entire era due to local obstacles. What you see today in stablecoins and RWA is a once-in-a-decade wave. If you do not ride it, you are actively giving up your voice. If you dare to step up, no matter how big the waves or how strong the winds, there is an opportunity to secure a place in this new world.

I believe Chinese entrepreneurs will succeed!

Five years from now, eight years from now, the stablecoin economy could reach a scale of tens of trillions of dollars, and I believe that by then, a significant proportion of the entrepreneurs standing at the pinnacle of the industry will be Chinese faces. For Chinese entrepreneurs, I have five suggestions:

【1】First is to go abroad: This wave is global; you must go out and enter the eye of the storm of the times. If you want to participate, you cannot be overly cautious; you must fight in the storm and seize positions where rules are being formulated.

【2】Second is to align your heart: The rules of the game in the industry have changed; the previous path of getting rich by just issuing a token is no longer viable. Now is an era of competing for real user value and application capabilities. For every product you create and every model you design, you must ask: Does it truly solve user problems? Does it create new efficiencies? Only projects that genuinely create value for users will be retained by this era.

【3】Third is to learn: Not only should you learn technology and compliance, but also new ideas and new institutional frameworks. You cannot use Web2 thinking to do Web3 things, nor can you use the mindset of issuing tokens to speculate in the era of stablecoins and RWA. Behind this is a whole new paradigm that requires continuous learning and breaking through oneself.

【4】Fourth is to unite: In this new stage, Chinese entrepreneurs must band together, not only for self-protection but also for resource integration, mutual learning, and even mutual supervision. This is also the beginning of building a new order in the industry. Now is the starting point for rebuilding order, and everyone needs to work together to shape a healthy ecosystem.

【5】Finally, be open: The essence of blockchain is an open, transparent, and fair collaborative network; this is the soul of blockchain. We should participate in the stablecoin economy and RWA with the spirit of blockchain, and innovate in blockchain.

7: In the past year, I have discussed the relationship between Web3 and AI with four top AI experts. Without exception, they believe that Web3 and AI are two sides of the same coin, and they will ultimately come together. AI and blockchain together form the infrastructure of a new generation of wealth distribution systems.

Trump originally planned to establish an AI committee and a Crypto committee, but later, on the advice of his staff, he simply merged them into an "AI + Crypto" presidential committee. I learned from one of his advisors about the thinking behind this decision: AI and Crypto should not be treated separately but should be linked and coordinated.

In the U.S., there are two typical representatives: one is Sam Altman: his Worldcoin has already reached ten million users globally, issuing three coins each quarter, even if each is less than a dollar, it is still a huge expenditure. He represents the path of "AI + Crypto + software"; the other is Elon Musk: he supports Dogecoin while promoting autonomous driving and Optimus robots, representing the direction of "AI + Crypto + hardware."

Both directions are "left hand AI, right hand Crypto." This is not accidental; it is the inevitable result of historical development. In the past year, I have discussed the relationship between Web3 and AI with four top AI experts, who are either leaders of top AI institutes or lead the forefront technology companies in the field globally, possessing a comprehensive grasp of information and deep understanding. They all believe that Web3 and AI are two sides of the same coin, and they will ultimately come together. AI and blockchain together form the infrastructure of a new generation of wealth distribution systems. Let me share a small anecdote: not long ago, I met with one of them again, and he also stated that AI and crypto are naturally compatible fields; currently, we are exploring ways to combine the two.

I have been looking for truly valuable AI + Crypto projects. It is not just about creating a chain, issuing a token, or slapping an AI label on it; it is about solving real problems and doing real engineering.

For example, distributed inference networks are a direction we have been investing in for a long time. We hope to build a system that can support 200, 2000, or even 20,000 devices to jointly complete AI inference tasks. This is not just a slogan; it is deep engineering at the hardware and network levels. Currently, our system is expected to launch its TGE (Token Generation Event) within two months.

In fact, as early as February last year, I reached out to the CSDN team, hoping they could mobilize developers to run large models in a distributed manner. This project has been advancing for over a year, and because everyone is serious and grounded in their work, we feel it is worthwhile. We are also collaborating with institutions such as the Hong Kong University of Science and Technology and the Hong Kong Polytechnic University. For example, they have already compressed AI models to run on mobile devices. We are discussing: if we cannot pre-install models, can we cooperate with mobile distribution channels to pre-install models during the sales process and activate them after user authorization? Our tests show that 90% of users will not actively uninstall them but are willing to keep them.

This decentralized edge computing node network can allow users to earn tokens by sharing computing power, thus activating the entire ecosystem. This is not an easy task, but precisely because it is difficult, it means there is an opportunity. Truly valuable innovations are never things that "everyone is doing."

We firmly believe that the deep integration of AI and blockchain will happen, and we are actively looking for entrepreneurial projects with practical implementation capabilities. I know many entrepreneurs are making similar attempts, and I welcome everyone to discuss together.