On May 30th, it was reported that Dr. Xiao Feng, the chairman and CEO of HashKey Group, recently posted on the official wechat account of HashKey Group, stating, “Stablecoins will become the starting point of the second growth curve in the blockchain industry.” This view is like a pebble thrown into a calm lake, causing ripples layer upon layer in the blockchain industry.
Dr. Xiao Feng further stated that the United States is consolidating the global status of the “tokenized dollar” through the stablecoin bill, shifting from the “petrodollar” to the “on-chain dollar”. The US Senate passed the motion to vote on the GENIUS stablecoin bill on May 19th, a move of profound significance. This bill sets strict regulatory standards for stablecoins, requiring issuers to use assets such as US dollars or government bonds as reserves to reduce volatility risks and protect investors. At the same time, it prioritizes repayment to token holders in the event of bankruptcy and strictly enacts anti-money laundering and counter-terrorism compliance requirements. From a series of actions taken by the US government, it can be seen that it is attempting to seize the initiative in the global digital economy competition by regulating the stablecoin market and maintain the dominant position of the US dollar in the global financial system.
With the continuous development of blockchain technology, the global financial landscape is undergoing profound changes. The limitations of traditional payment and financial systems in terms of efficiency and cost have gradually become prominent. However, the decentralized and distributed ledger features of blockchain technology offer the possibility of building a more efficient and transparent financial system. Stablecoins, as an important connection point between blockchain technology and the traditional financial system, their significance is self-evident. It not only possesses many advantages of blockchain technology, such as rapid transaction confirmation and low transaction costs, but also maintains a relatively stable value by being pegged to legal tender, reducing the price fluctuation risk in the cryptocurrency market. Therefore, it is more likely to be widely applied in daily transactions, cross-border payments and other fields.
At the same time, the Legislative Council of Hong Kong passed the Stablecoin Bill on May 21st, which is also a significant event. This move by Hong Kong indicates its active embrace of blockchain technology, aiming to create a secure and compliant stablecoin ecosystem through sound legislation, attract global blockchain enterprises and innovative projects, and consolidate its significant position in the global financial sector, especially its leading edge in digital finance.
Xiao Feng emphasized that the legislation on stablecoins in the United States and Hong Kong has elevated the application of blockchain technology to a national-level technological competition. In this competition, stablecoins are undoubtedly the key “players”. In the past, the blockchain industry mainly focused on the construction of infrastructure, such as the development of public chains. But nowadays, with the gradual improvement of regulations related to stablecoins, the application scenarios of stablecoins will be greatly expanded. In cross-border trade, stablecoins can simplify the payment process and reduce cost losses caused by exchange rate fluctuations and intermediate links. In the field of decentralized finance (DeFi), stablecoins are indispensable underlying assets, supporting various financial activities such as lending and trading.
According to the data, the total settlement amount of US dollar stablecoins in 2023 was 16 trillion US dollars, which has already exceeded the combined total of VISA and Mastercard. Such a huge settlement scale fully demonstrates the strong competitiveness and huge potential of stablecoins in the payment field. This also indirectly confirms that Dr. Xiao Feng’s view that stablecoins will lead the second growth curve of blockchain is not groundless. As the stablecoin market continues to develop, its role in promoting the blockchain industry will become increasingly significant, driving related technological innovation, business model innovation, and the continuous expansion of application scenarios, and opening up a brand-new growth chapter for the blockchain industry.
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