HashKey Xiaofeng: Trump's support for cryptocurrencies could prompt China to revive its digital asset market

On November 14, according to the South China Morning Post, Xiaofeng, chairperson and CEO of HashKey Group, said in an interview: "If the US Congress and the incoming President Trump clarify the cryptocurrency policy, continue to legislate and promote the development of the industry, this will definitely become the driving force for China to accept [cryptocurrencies]." Xiaofeng believes that the exclusion of Russia from the Swift financial information system by Washington and its Western allies in 2022 may also prompt Beijing to support the cryptocurrency industry. "If these events had not happened, it might have taken five to six years from now for China to accept cryptocurrency business," he said. "But now, due to these factors, that time frame may be shortened to two years."
The Chinese government has so far shown no sign of possibly easing its ban on digital assets. However, Beijing has allowed Hong Kong to develop its digital asset industry. Xiaofeng said that if China is to resume the development of its digital asset market, it can start with a payment clearing system based on regulatory stablecoins. "Stablecoins are currently the best solution for cross-border business-to-consumer trade," he said, citing reasons such as fast transaction speed and low fees. Xiaofeng said that his HashKey team recently conducted a survey in Yiwu and found that almost all merchants had received inquiries from buyers about whether they could use popular US dollar stablecoins such as USDT and USDC for payment.