Original source: Shenchao TechFlow
On October 31, the "Hong Kong Fintech Week 2022" co-organized by the Hong Kong Monetary Authority and the SAR Government Investment Promotion Agency was grandly opened in Hong Kong. The Policy Declaration of the HKSAR, setting out the government's policy stance and approach to develop a vibrant virtual asset industry and ecosystem in Hong Kong.
In addition, SBF, the founder of FTX, Xiao Yi, the founder of Animoca, Adrian Cheng, CEO of New World Development... and other star entrepreneurs participated, and discussed the future of financial technology in Hong Kong.
Fast Facts on the First Day of Hong Kong Fintech Week: What did SBF, Xiao Yi, and Adrian Cheng say?
Hong Kong Financial Secretary Paul Chan kicked off the Hong Kong Fintech Week with an opening speech. Five years ago, there were no more than 180 fintech companies in the city, he said. Today, there are more than 800, from start-ups to large enterprises.
He attributed the growth to Hong Kong's open market, strict regulatory regime, rule of law, well-developed infrastructure and free flow of capital and information. Mr Chen also said that Hong Kong is open and inclusive to the global community of innovators working in the virtual asset business.
Together with financial regulators, the government is working hard to provide a conducive environment to promote the sustainable and responsible development of the virtual asset industry in Hong Kong."Together with financial regulators, the government is working hard to provide a conducive environment to promote the sustainable and responsible development of the virtual asset industry in Hong Kong."
Policy Statement on the Development of Virtual Assets in Hong Kong
The Hong Kong government announced this morning a policy statement on the development of virtual assets (VA) in Hong Kong. The statement issued by the Financial Services and the Treasury Bureau (“FSTB”) sets out the government’s policy stance and approach towards developing a vibrant virtual asset industry and ecosystem in Hong Kong.
The government is open to reviewing the property rights of tokenized assets and the legality of smart contracts in the future to facilitate their development in Hong Kong.
The government is open to reviewing the property rights of tokenized assets and the legality of smart contracts in the future to facilitate their development in Hong Kong.
"Fast Facts on the First Day of Hong Kong Fintech Week: What did SBF, Xiao Yi, and Adrian Cheng say?"
Hong Kong Monetary Authority chief executive Eddie Yu, who took the stage in avatar form, said he was eager to explore how the Metaverse would shape the future landscape of real-world financial activity.
He also shared three key takeaways from his fintech journey so far:
radical open mind- Need to be radically open to new ideas and experiment with things that can make the financial system better. This mentality could lead Hong Kong to develop its popular Faster Payment System (FPS), establish eight virtual banks, and support more advanced data infrastructure in the financial system.
New Opportunities Bring New Users- New platforms in retail payments, data infrastructure, and cross-border payment platforms tend to be more successful and sustainable when they gain widespread adoption, leading to strong network effects. In other words, the bigger the network, the more users.
Beyond technology—first level title
Animoca CEO Yat Siu："Fast Facts on the First Day of Hong Kong Fintech Week: What did SBF, Xiao Yi, and Adrian Cheng say?"
During the fireside chat, the host, Hui, Secretary for Financial Services and the Treasury, first asked Siu, co-founder and executive chairman of Animoca Brands, which of his many businesses is his favorite. While Siu didn't choose an answer, he did offer his thoughts on how emerging infrastructure could change society.
“In classic forms of capitalism, the value usually only goes to the shareholders. While Hong Kong thrives in this situation, it is difficult for some to participate. What Web3 does is transform this relationship from client/consumer to A client/owner who shares in the potential of the business itself.”
"Speed is one of the characteristics of Hong Kong, and technology adoption is fast. Four years ago, most people in Hong Kong didn't even know what NFT was, and now the Hong Kong government has started to issue NFT. This shows that people have a real interest in this new type of thing." Love, and can promote the development potential of Hong Kong."
China Securities Regulatory Commission: Regulating crypto service providers is the only way to embrace innovation
The SFC's Julia Leung argued that cryptocurrencies need orderly market development to protect the industry and support innovation."The cryptocurrency community has long argued that regulation stifles innovation, which limits fintech development and investor choice. But the excesses of certain cryptocurrency companies have threatened the entire cryptocurrency ecosystem and shrunk the market cap of crypto assets from a peak of $3 trillion to $1 trillion,"Leung said.
She added:"Let me be clear. We support the underlying DLT technology, and we welcome the development of the Hong Kong fintech community. NFT, Metaverse and Web 3.0 are beginning to reshape our lives."
"However, the crypto winter has shown that taking advantage of these opportunities is far from easy. In fact, they are fraught with risks, which could hurt investors and undermine confidence in the space. Bringing cryptocurrency-as-a-service providers under regulation is the only way to embrace innovation."
Fast Facts on the First Day of Hong Kong Fintech Week: What did SBF, Xiao Yi, and Adrian Cheng say?
Yi Gang, Governor of the People's Bank of China, also delivered a speech. Mr. Yi said,eCNY is China's central bank digital currency, which aims to meet domestic payment needs and promote the development of financial inclusion to improve the efficiency of currency and payment systems.
He added that the People's Bank of China (PBoC) restricts eCNY to authorized operators who only collect information required for their exchange and circulation services, and that personal information security is guaranteed through advanced technology and strict management, fully complied with Consumer Privacy Protection Laws and Regulations.
Encrypted sensitive information is de-identified for all non-trading parties, prohibiting units and individuals from arbitrarily inquiring without legal authorization. However, Mr. Yi pointed out that the situation is not black and white.A delicate balance must be struck between protecting privacy and combating illegal activity.
The People's Bank of China is working with the Hong Kong Monetary Authority and other monetary authorities on CBDCs to better serve global and domestic investors and strengthen Hong Kong's role as an international financial centre.
SBF: Need for a knowledge-based system rather than a wealth-based system
Cryptocurrency entrepreneur Sam Bankman-Fried believes that assets and investments should not be based on wealth, but on knowledge.
“Assets based on wealth are classist and racist, and create massive, inequitable access to digital assets. It makes the rich richer.”
"He said."He said.
Fast Facts on the First Day of Hong Kong Fintech Week: What did SBF, Xiao Yi, and Adrian Cheng say?
He said:
He said:"According to research, governments deciding to replace traditional stimulus measures with digital consumer vouchers during COVID-19 are at least three times more effective than regions using traditional methods. "
"The technologies that redefined the consumer market are now reshaping industrial value chains, and Hong Kong is once again at the forefront of the digital age."
"New technologies and related solutions can significantly reduce"trust cost"and friction. Through smart contracts, information related to procurement is automatically confirmed and executed. This high level of collaboration can improve efficiency and reduce errors across the trade and logistics value chain"。
Central Banking and Innovation: Evolution or Revolution?
In a fireside chat moderated by Hong Kong Monetary Authority Vice President Lee, Ms Skingsley, Head of the BIS Innovation Center at the Bank for International Settlements, expressed her enthusiasm for the relationship between central banks and innovation. She pointed out thatCentral banks and local governments have a close relationship because domestic institutions can be very different in different countries.
The BIS Innovation Center has been creating opportunities for central banks around the world to collaborate on delivering the financial infrastructure of the future and exploring ways to accommodate innovative technologies.
The reports and coding developed by the BIS Innovation Center over the years have a high degree of transparency, and it is hoped that other institutions will learn from them and use them for their own experiments. It is also important for central banks to understand what technology is and how it can be used or not used.
Embrace new opportunities in the Greater Bay Area to create a sustainable future
Leaders of major banks and financial services companies were asked how and why they integrate ESG into their financial decision-making. From the very beginning, Mr. Sun Yu of Bank of China Hong Kong echoed the feelings of many group members,"ESG is no longer just a concept or a slogan that companies talk about. Now, it's turning into a concrete business strategy"。
Meanwhile, Mary Huen, CEO of Standard Chartered Bank Hong Kong, said:"The strength of Hong Kong is that it provides funders and advisors to companies in China, the Greater Bay Area and internationally. In both capacities, we have the opportunity to guide our clients towards more sustainable choices."
William Fung, CEO of ATMD Idea Group said:"ESG is a way of life. It's not based on what you want, it's based on what we need. We must all do our part to make the world a better place for future generations."
Fast Facts on the First Day of Hong Kong Fintech Week: What did SBF, Xiao Yi, and Adrian Cheng say?
Adrian Cheng, CEO of New Century Development, stated that he supports the latest policy statement of the Hong Kong SAR government on the development of virtual assets in Hong Kong. Hong Kong has a lot to offer when it comes to digital assets, cryptocurrencies and blockchain, he said. He also highlighted the importance of China’s State Council supporting blockchain.
"With our unique position in the Greater Bay Area, Hong Kong will lead the regional development of cross-border blockchain infrastructure, as well as the blockchain ecosystem. Hong Kong is also in the best position to guide companies to seize blockchain opportunities in mainland China."
"We also see opportunities where the physical and digital dimensions intertwine, providing a new arena for innovators and entrepreneurs to shape and lead the next wave of cultural and artistic experiences. This is a once-in-a-lifetime opportunity for all of us - especially the younger generation, whose lives are already immersed in the world of Web3."
Meta: Stepping into Asia Pacific's $1 trillion metaverse
Mr. Dan Neary, Vice President of Meta Asia Pacific, joined the meeting via video, saying he is excited about the incredible growth of the financial industry in Hong Kong and the Asia Pacific region, as well as the development of Web3 technology and Metaverse.
Meta Corporation sees the Metaverse as the next social evolution of the Internet. The Metaverse is a digital connection to communicate with anyone, from any device, anywhere.
Mr. Neary said,The Metaverse is incredibly immersive and has the power to change the world.For example, our relationship with the internet has always been looking at a screen, but with the advent of the metaverse, he believes people will live inside the internet, become part of it.
Andreessen Horowitz (a16z): The Next Frontier of Fintech
Rampbell, a partner at Andreesen Horowitz, said he sees a lot of opportunity for fintech companies to address small consumer needs. Just like Airbnb was created for users who want to borrow a house, and Uber was created for users who want to get a ride, fintech can fill many small gaps and needs in the lives of ordinary financial customers.
When asked why this hadn't happened yet, Alex said it was becauseA lot of financial technology is new and it will take a pandemic for trends to start going fully digital.
"He said."He said.
"Just as an object in motion stays in motion and an object at rest remains at rest, a bank's customers stay at the bank unless they are significantly pushed or disrupted. A simple app that can take a lot of the hassle out of banking at any one institution, at least in the US, would make life a lot easier for many customers."
Top fintech investments and trends
In this session, Mr. Cao, the co-founder of Gobi, told everyone to start looking south, because Southeast Asia is a very large market.mostly young and innovative people. He also mentioned that it is crucial to focus on the Chinese market as it has entered the third stage of development."Greater Bay Area,Hong Kong, in particular, is very suitable for the development of fintech,"he added.
Mr. Jehan Chu, co-founder and managing partner of Kenetic, mentioned that blockchain is the next version of the Internet."hybrid is the new watchword", he added. He said back to'Web 2.5' is key to the success of blockchain and fintech as it will make it more accessible to the wider public.
Meanwhile, Lee, managing partner of GGV Capital, said,A company should be innovative and different from other fintech companies in Hong Kong to be successful.It is also important to achieve growth at a manageable cost, predictable and attainable ROI. "Simply put, you want to make sure you make money!" she said.
Fast Facts on the First Day of Hong Kong Fintech Week: What did SBF, Xiao Yi, and Adrian Cheng say?
In a fireside chat moderated by HKSAR Secretary for Financial Services and the Treasury Christopher Hui, WestCap's Tosi mentioned three key areas for fintech investment over the next decade: payments, banking technology and access to private markets. He said the companies that surprised him the most were the ones that were adaptable and iterated over time.
He also has advice for those who are considering starting their own business:
keep the passion- Do what you like. Sometimes success can be some personal problem that a person works on.
keep learning– It is important to understand and learn what is happening in the ecosystem.
create culture- Fostering a culture where people are able to challenge their status quo and embrace new ideas.
Christopher Hui also mentioned that the government is recruiting fintech talents from abroad to expand Hong Kong's talent base and help those already in the field improve their knowledge.
Fast Facts on the First Day of Hong Kong Fintech Week: What did SBF, Xiao Yi, and Adrian Cheng say?
The MAS is working with the Bank of Israel to create a central bank digital currency (CDBC). The idea behind them is to create a one-stop shop for digital payments.
"I recently bought a new mobile phone,"Nelson Chow, Chief Financial Technology Officer of the Hong Kong Monetary Authority, said,"I realize I have so many different payment apps on my phone."
By creating CDBC, ordinary people will find it easier to bank digitally and transact with merchants because everything will be unified into one digital currency.
Fast Facts on the First Day of Hong Kong Fintech Week: What did SBF, Xiao Yi, and Adrian Cheng say?
While millennials and Generation Z are the main drivers of digitization in the financial industry, they are not the only groups that banks need to consider, said Maggie Ng, head of wealth and personal banking at HSBC in Hong Kong. Older groups in society may be slower to adopt these technologies, but they are just as important.
"We want to make sure we don't leave anyone behind"，she added."It's very important to us to use digitization to make things more accessible to everyone. If those older cohorts who are slower to adopt new technologies are left behind, then we haven’t accomplished this goal, we’ve just shifted our priorities to younger people."
Global Leaders - Tomorrow's Economy
Moderated by Bloomberg reporter Yvonne Man, JPMorgan President and COO Mr Daniel Pinto and Standard Chartered CEO Mr Bill Winters spoke about financial services and the structure of the banking industry as a whole. According to Mr. Pinto,Banks are adapting to technological developments, but there are still challenges, mainly on the investment side.
As for the data, Mr. Pinto said,Banks today are trying to turn data into something useful for their business and customers. Banks can use the data to segment customers and offer services or products to specific customers.On the other hand, Winters said,Banks are unlikely to win this race as there are many companies focused on data analytics.The market is always growing fast, and Mr Winters advises banks to give their employeesTeach the importance of data.If they know how to use data wisely, this may be the key to winning at the bank.
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