Hong Kong officials and industry insiders touted the city’s cryptocurrency trials and regulatory stability as strengths for the market at the Belt and Road Forum on Thursday, as the crypto euphoria surrounding the re-election of Donald Trump to the US presidency pushed the price of bitcoin past US$100,000 this week.
“Trump is unpredictable. He may change his mind tomorrow; you never know,” said Joseph Chan – chair of the think tank Silk Road Economic Development Research Centre, one of the organisers of the event – who moderated a panel at the forum on Web3 and the digital economy. “Hong Kong’s regulation is more consistent, which I believe is the right approach.”
The local Belt and Road Forum event held at the Conrad Hong Kong this week is one of a series of events promoting China’s state-backed Belt and Road Initiative. It aims to promote trade and development across Asia, Europe and Africa. Hong Kong has been a key pillar of the initiative in its role as a facilitator of cross-border payments, with the local government recently emphasising the role that blockchain could play in this area.
Hong Kong Chief Executive John Lee Ka-chiu said in opening remarks delivered via video that tokenisation – putting real-world assets on a blockchain – is growing in influence as a key technology in the finance sector. He also addressed the technology’s ability to facilitate cross-border payments. Both were key topics at this year’s FinTech Week in October.
“Our robust capital support forms a solid foundation to foster the digital economy,” Lee said. “This is bolstered by a vibrant fintech ecosystem encompassing over 1,100 companies.”
Hong Kong Chief Executive John Lee gives the opening address at the Belt and Road Forum 2024, with the theme of “Digital Economy and Payment Settlement.” Photo: Yi Luo
For the past two years, Hong Kong has been trying to court the Web3 industry back to the city after some big names pulled out during the pandemic amid regulatory uncertainty. A new mandatory licensing scheme was meant to solve any remaining ambiguity regarding the government’s stance, but it has proven costly and onerous, attracting few applicants.
