Blockchain Financial Innovation Is Vital To The Next Industrial Revolution

Xiao Feng, Chairman of HashKey Group, has declared that blockchain finance will be the foundation of the next industrial revolution. Speaking to an early morning crowd at the Hong Kong Convention and Exhibition Center, Xiao described blockchain as a “new generation of financial infrastructure” that redefines how transactions are recorded, settled, and governed.

Financial Revolution at the Core of Industrial Advancements

During his keynote, Xiao traced parallels between historical technological booms and the financial innovations that fueled them:

• Banking Credit: Laid the groundwork for the British Industrial Revolution.
• Stock Markets: Propelled electrical breakthroughs in the United States.
• Venture Capital: Energized Silicon Valley’s information revolution.

“Any industrial revolution must wait for a financial revolution,” Xiao stated. According to him, “Cryptocurrency finance will become the core financial innovation supporting the fourth industrial revolution.”

He contrasted traditional finance with blockchain-based finance, underscoring shifts from bank accounts to digital wallets and from batch settlement cycles to near-instant transactions.

Regulatory Shifts and Evolving Markets

Xiao highlighted the U.S. Securities and Exchange Commission’s recent decision not to classify dollar-backed stablecoins as securities, suggesting the move will encourage broader institutional involvement in crypto-based monetary processes.

He also stressed how traditional stock exchanges, which are inching toward 23-hour trading cycles, must adapt to compete with crypto markets that already operate 24/7:

“Traditional exchanges will eventually need to adapt to compete with cryptocurrency markets that have operated 24/7 since day one,” he observed.

Hong Kong’s Strategic Edge

The event, organized by HashKey, featured prominent regulators like Paul Chan Mo-po (Hong Kong’s Financial Secretary), Joseph H. L. Chan (Under Secretary for Financial Services and the Treasury), Christina Choi (Executive Director of Investment Products at the SFC), and George Chou (Chief Fintech Officer of the Hong Kong Monetary Authority). Their participation underscores Hong Kong’s intent to serve as a strategic testing ground for blockchain and related cryptocurrencies.

While mainland China enforces stringent rules against crypto, Hong Kong’s more accommodating approach may function as a proving ground for future policy, providing blockchain innovators with a stable environment to experiment.

The Hong Kong Web3 Festival runs through Wednesday, featuring industry panels, demos, and networking gatherings. Developers, investors, and crypto enthusiasts from around the globe have converged to discuss the future of blockchain financial innovation and its role in shaping the world’s next industrial era.