Hong Kong is betting big on Web3, the next generation of the internet that is built on blockchain technology. The city’s financial secretary, Paul Chan Mo-po, has said that he believes Web3 will be the future of digital tech growth in Hong Kong.
Web3 is still in its early stages, but it has the potential to revolutionize many industries, including finance, commerce, entertainment, and gaming. Some of the key advantages of Web3 include:
- Disintermediation: Web3 removes the need for intermediaries, such as banks and other financial institutions. This can lead to lower costs and more efficient transactions.
- Security: Blockchain technology is highly secure, making it ideal for storing and transferring sensitive data.
- Transparency: All transactions on the blockchain are transparent, which can help to build trust and confidence.
- Immutability: Once data is recorded on the blockchain, it cannot be altered. This makes it ideal for applications that require a high degree of trust, such as voting and supply chain management.
Hong Kong is well-positioned to become a leader in the Web3 space. The city has a strong financial sector and a skilled workforce. It is also a global financial hub with a well-established regulatory framework.
The Hong Kong government has already taken steps to support the development of Web3. In February 2023, the government announced a HK$50 million (US$6.4 million) investment in the Web3 ecosystem. The government is also planning to set up a task force to study the development of Web3 and to develop policies to support the industry.
In addition to government support, there is also a growing private sector interest in Web3 in Hong Kong. A number of local companies are developing Web3 applications, and several international companies have set up offices in Hong Kong to tap into the growing market.
With its strong financial sector, skilled workforce, and supportive government policies, Hong Kong is well-positioned to become a leading hub for Web3 development.
Here are some additional details about the Web3 ecosystem in Hong Kong:
- Cyberport: Cyberport is a tech and multimedia hub in Hong Kong that supports tech and digital entertainment companies. The government has allocated an extra HK$50 million to boost the Web3 ecosystem here. Over 180 Web3-focused companies are currently based in Cyberport, with 20% coming from abroad.
- HashKey: HashKey is a local crypto exchange in Hong Kong that recently got approval to offer crypto assets to regular people, expanding from just institutional clients. This is a significant development, as it makes it easier for people in Hong Kong to get involved in the Web3 space.
- Digital Entertainment Leaders Forum: Paul Chan recently attended this three-day blockchain event held at Cyberport in Hong Kong. The event brought together leaders from the tech, entertainment, and financial industries to discuss the future of Web3.
Overall, the signs are positive for the development of Web3 in Hong Kong. The government is supportive, the private sector is engaged, and there is a growing pool of talent. If things continue to develop in this way, Hong Kong could become a major player in the global Web3 ecosystem