Bitcoin Asia Roundtable Discussion: The Role of Stablecoins in the Future of Asian Finance

Compiled by Golden Finance. On August 28th, the Bitcoin Asia Summit was held in Hong Kong, featuring several lively roundtable discussions on related topics. Among them, the roundtable on "What role do stablecoins play in the future of Asian finance?" attracted Waterdrip Capital partner Vincent Ge, Hayek Technology co-founder and CBO Jeff Wen, macro analyst Phyrex Ni, and investor Qinbafrank. The panelists expressed their views on stablecoins, engaging in a lively discussion. Regarding the current development of stablecoins, Phyrex Ni believes that stablecoins can be divided into four types: first, stablecoins used for transactions, such as USDC; second, stablecoins for payments, such as PYUSD issued by PayPal; third, stablecoins for fund transfers, which almost all mainstream stablecoins currently offer; and fourth, stablecoins for staking, which earn related returns on the chain. He also stated that mainstream stablecoins can be roughly divided into two types based on their revenue models: stablecoins with real assets as reserves, and stablecoins that are subsidized by returns earned through staking assets. In particular, the former generates revenue partly from transaction fees and partly from earnings from its reserve assets, namely US Treasury bonds and US dollar cash. Regarding the application of stablecoins after US stocks are put on-chain, Phyrex Ni stated that US stocks on-chain essentially require two currencies: fiat US dollars and the compliant stablecoins required for on-chain transactions. Based on this scenario, stablecoin issuers may issue corresponding compliant stablecoins for trading in crypto-stocks or on-chain US stocks. Regarding the development and future prospects of stablecoins in various industries in Asia, Jeff Wen stated that the US "Genius Act" for stablecoins does not replace the Federal Reserve's coinage authority, but rather allows stablecoin issuers to compete freely against the US dollar. He believes that Taiwan, as a major global semiconductor chip manufacturing region, could explore launching a US dollar stablecoin related to semiconductor chip trade. He also stated that if a $100 billion application scenario could be identified, mainland China, Hong Kong, and Taiwan would all likely issue relevant stablecoins. In addition, regarding future sectors worth watching, Jeff Wen stated that the next phase will be an era of real-world asset (RWA) compliance, based on stablecoin and financial product compliance. He believes that stablecoins can be viewed as RWAs (Real World Assets) transitioning from the real to the virtual. Jeff Wen predicts that the future implementation of RWA assets will begin with standardized financial products, moving from fiat currencies like the US dollar to assets like US Treasuries and stocks. Regarding Hong Kong's unique advantages and potential application scenarios for stablecoins, Qinbafrank stated that whoever controls access to stablecoins will control the pricing power of future on-chain assets. As a financial free port, a window into China's opening up to the outside world, and a gateway to trade within the Belt and Road Initiative and BRICS, Hong Kong could explore launching a Hong Kong dollar stablecoin. In the future, some institutions may also explore launching offshore RMB stablecoins in Hong Kong.