Hong Kong Financial Secretary Paul Chan explained that despite the recent fluctuations in the cryptocurrency market, it is the "right time" for the city to invest in Web3 technologies.
Web3 and Cryptocurrency Statement from Hong Kong Financial Secretary
In a published blog post, Chan said that Web3 encompassing blockchain, smart contracts, decentralized finance and other innovations could potentially transform various sectors of the economy and society.
Chan said Hong Kong has the potential to play an important role in the emerging digital economy and is well positioned to take advantage of the opportunities offered by Web3. He cited the city's strengths in finance, trade, logistics, professional services and innovation as an advantage for the development and implementation of Web3 technologies.
He also said that the next phase of development will focus on real-world blockchain applications and related technologies that can benefit the economy and current business models. He mentioned some Web3 use cases such as digital identity, digital assets, supply chain management and social governance.
Chan's blog post comes ahead of a busy week for the Web3 industry in Hong Kong. The city will host the Hong Kong Web3 Festival, an industry gathering, from Wednesday to Friday.
The Hong Kong Government will also hold the two-day Digital Economy Summit from Thursday to Friday, with speakers from global technology giants such as Google, Microsoft, Alibaba and Tencent.
Chan said that the cryptocurrency industry reminds him of the early days of the internet in the 2000s.
Hong Kong has taken a regulatory approach to crypto, unlike mainland China, which banned crypto transactions in 2021.
Hong Kong is a special administrative region of China and has enjoyed a high degree of autonomy and freedoms under the principle of "one country, two systems" since its takeover from the UK in 1997.
*Not investment advice.
