Global competition for the virtual asset hub status, Hong Kong shows determination

Hong Kong is actively participating in the competition to become a global virtual asset hub, competing with cities like Singapore, London, and New York. Recently, Hong Kong's Financial Secretary Paul Chan published an article emphasizing the vision of developing Hong Kong into an international virtual asset center, showcasing the determination and commitment of Hong Kong in this field.

This initiative means that Hong Kong will further promote the development of the NFT, Web3, and cryptocurrency markets. Web3, as an internet ecosystem based on blockchain technology, aims to achieve decentralization or partial decentralization of the internet, allowing users to better control their data, assets, and digital identities. This new form of digital economy has attracted substantial investment, with venture capital investment in Web3 exceeding $18 billion in the first half of 2022.

At the upcoming Hong Kong FinTech Conference, innovations related to Web3 will be showcased. The conference plans to issue limited edition attendance proof tokens in the form of NFTs to participants, allowing holders to create exclusive virtual avatars through 3D scanning and experience a new way of attending the event. This practice of issuing NFT attendance certificates has become a trend; although they are not physical, they hold collectible and tradable value due to their NFT nature.

Around the world, multiple countries and regions are actively laying out plans in the field of virtual assets. Japanese Prime Minister Fumio Kishida stated that the arrival of the Web3 era could drive economic growth. A Tokyo city councilor also publicly unveiled plans to transform Tokyo into a cryptocurrency financial center. Singapore, with its advantages in population, urban area, and financial policies, has become one of Hong Kong's main competitors. According to data, the United States, India, China, the United Kingdom, and Singapore are the top 5 countries for blockchain talent globally.

The UK is also actively laying out plans, with the government announcing its intention to make the UK a global technology center for crypto assets. In the US, the mayors of Miami and New York have expressed their desire to turn their respective cities into hubs for Web3 and cryptocurrency innovation.

Hong Kong has a strong foundation in the fintech sector, with over 600 fintech companies covering areas such as mobile payments, cross-border wealth management, and virtual asset trading. Recently, several Hong Kong government officials have frequently expressed their willingness to develop the cryptocurrency finance and digital asset industry.

However, Hong Kong's Web3 development still faces many challenges. In terms of policy openness, Hong Kong is not as advanced as Singapore and South Korea; in terms of technical talent reserves, it is not as strong as first-tier cities in the mainland; and in terms of the number of Web3 companies, it is far fewer than New York and Silicon Valley in the United States. How to achieve differentiated competition with other global financial centers in the field of cryptocurrency finance and find the most suitable development path is a question that the Hong Kong financial industry needs to think deeply about.