Research Summary
This report presents an interview with Chiu Duncan, a member of the Hong Kong Legislative Council and advocate of the “Three Arrows, Three Circles” policy. Duncan discusses the recent advancements in Hong Kong’s virtual asset industry, the potential of Web3, and the role of cryptocurrencies and tokenization in Hong Kong’s economic development. He also compares Hong Kong’s approach to Singapore’s in promoting the integration of large institutions and cryptocurrencies.
Key Takeaways
Chiu Duncan’s Perspective on Web3
- Web3’s Potential: Duncan compares the current state of Web3 to the internet in the early 2000s, suggesting that the real winners of Web3 might only become apparent in 5 to 10 years.
- Role of Cryptocurrencies: Duncan sees cryptocurrencies as a part of the broader Web3 development, which includes all financial products, personal data, and new internet directions based on blockchain.
- Comparison with Internet Bubble: Duncan draws parallels between the internet bubble of 2000 and the current state of Web3, suggesting that the underlying infrastructure of Web3 is still being developed.
“Three Arrows, Three Circles” Policy
- Policy Overview: The “Three Arrows, Three Circles” policy aims to stimulate Hong Kong’s investment environment and promote the development of the Hong Kong dollar stablecoin.
- Tokenization of Land: Duncan suggests using asset-backed tokens (ABT) as compensation for land reclamation, which aligns well with the original decision-making structure of villages.
- Benefits of Tokenization: Tokenization can improve land management, allow global participation, reduce transaction costs, and open up a source of funding for land development.
Comparison with Singapore
- Regulatory Differences: Duncan acknowledges that Singapore has been ahead in promoting digital assets and stablecoins, but notes that Hong Kong is catching up in areas like bank account opening.
- Learning from Singapore: Duncan suggests that Hong Kong can learn from Singapore’s approach to promoting digital assets, while also maintaining a compliant and reliable market within financial innovation.
Actionable Insights
- Exploring Web3: Stakeholders should investigate the potential of Web3 and its implications for the future of the internet and financial systems.
- Adopting Tokenization: The Hong Kong government and other entities should consider the benefits of tokenization, particularly in land management and development.
- Regulatory Improvements: Hong Kong should continue to learn from Singapore’s approach to digital assets and stablecoins, while also working to improve its own regulatory environment.
