At the 2023 Hong Kong Web3 Carnival, "New Trends in Hong Kong Web3 Development: Evolution and Integration from Web2 to Web3" sub-venue 2, Chen Zhiheng, Chief Corporate Development Officer of Hong Kong Cyberport Management Co., Ltd., delivered a speech. He said that Cyberport will focus on global Web3 companies and cultivate excellent Web3 companies in a dynamic ecosystem. Hong Kong will support comprehensive policies, so that Web3 companies of any size can give full play to their strengths here. Cyberport will continue to cultivate and help Web3 companies achieve technological breakthroughs and attract entrepreneurs and technical personnel.
The following is the full text of the speech:
It is a great pleasure to participate in the Hong Kong Web3 Carnival. Web3 is the latest and most exciting evolution of the internet. With more and more cutting-edge applications of blockchain technology, such as decentralized applications and NFT, Web3 has the potential to change our lives in all areas of life, from finance and entertainment to medical care and education.
At its core, Web3 is about decentralizing power and ownership that is currently held by a handful of tech giants and corporations. By leveraging the trustworthy and transparent infrastructure of the blockchain, anyone with an Internet connection can create, exchange, and monetize digital assets without relying on any intermediaries, allowing innovators, entrepreneurs, and creators to have a level playing field,
Web3 is having a major impact in the financial sector. Decentralized finance (DeFi) can provide faster, cheaper, and more accessible financial services to those who are underserved or excluded by traditional banks. Through DeFi, users can earn yield on their encrypted assets, invest in various assets, and borrow or lend funds from other users, all through decentralized applications built on the blockchain.
Another area where Web 3 can reach its full potential is the creator economy. Through NFT, artists, musicians, writers, and other creators can sell digital artwork, music albums, e-books, and even tweets as unique, verifiable, and transferable assets. This helps creators monetize their content directly without relying on advertising revenue or subscription models controlled by third-party platforms.
However, Web3 is still in its infancy and there are many challenges to overcome. For example, to realize its full potential, Web3 needs to be user-friendly, scalable, and interoperable so that users can seamlessly move assets and data between various Web3 platforms. In addition, regulatory, legal and governance issues need to be addressed, especially with regard to data privacy, security and ownership.
Nonetheless, I believe that with the right mindset, collaboration, and innovation, we can overcome these challenges and make Web3 a positive force in our world. By encouraging experimentation, diversity, and openness, we can foster a vibrant and inclusive Web3 ecosystem that benefits everyone.
It is really exciting to be involved in the development of the Web3 industry, especially in Hong Kong.
In October last year, the Hong Kong SAR government issued a policy statement on the development of virtual assets, expounding its vision and policy guidelines for the field of virtual assets, related innovative technologies and applications, and the development of the virtual asset ecosystem. The government's policy statement laid the groundwork for the industry to grow, and many exciting projects have emerged since then. Governments and regulators are working on several pilot projects, including the tokenization of government-issued green bonds and the cross-border application of the central bank digital currency eHKD. In December last year, Hong Kong Exchange became the first exchange in Asia to offer crypto asset ETF products. As of January this year, the Hong Kong Stock Exchange has listed three crypto asset ETFs, opening up new opportunities for individual investors in the virtual asset space. The Securities and Futures Commission (SFC) is consulting on proposed requirements for virtual asset trading platforms to allow licensed platform operators to provide services to retail investors, and seek market input on required security measures.
All of the above reflect Hong Kong's awareness of Web3 technology and its potential to drive economic growth and innovation. As you all know, the Hong Kong government announced in the recent 2023-2024 budget that it will allocate HK$50 million to promote the development of the Web3 industry. This is undoubtedly encouraging and proves that the Hong Kong government sees business opportunities.
As a community of more than 1,900 start-ups and companies, Cyberport has been actively promoting the latest government policies and making every effort to attract the world's leading enterprises and innovative technology talents to Hong Kong. In January this year, Cyberport established the "Cyberport Web3 Base", which aims to support the development of local emerging industries and attract international Web3 companies to set up and operate in Hong Kong. The "Cyberport Web3 Base" provides opportunities for exchanges and cooperation between local and foreign Web3 companies. It also provides state-of-the-art facilities, comprehensive support and initiatives for Web3 businesses new to Cyberport.
Cyberport is one of the largest Web3 communities in Hong Kong, with some of the most well-known and leading Web3 companies, such as Animoca Brands, the world's largest integrated Web3 flagship company, and Hashkey, a licensed virtual asset trading platform and digital asset financial services group, while the community is still is expanding rapidly. Since January, dozens of Web3 companies have settled in Cyberport, and the community has grown to include more than 140 Web3 companies and start-ups, covering innovative fields such as financial technology, smart life and digital entertainment, while targeting the development of virtual assets, Solutions for Web3 infrastructure and other innovation and technology fields, such as Metaverse and NFT.
Through the Cyberport Web3 Base, Cyberport will focus on attracting and promoting global Web3 innovators and entrepreneurs, as well as continuously enhancing talent support and resource investment.
As Hong Kong's vibrant and diverse digital technology ecosystem, Cyberport is committed to nurturing and supporting the next generation of start-ups. We have designed a comprehensive set of professional incubation programs, from business incubation, seed funding, marketing support, business expansion to investment docking, to support start-ups to succeed in various entrepreneurial journeys. We have nurtured various types of start-ups, some of which have become "unicorn-level" start-ups in Hong Kong, as well as leading enterprises including four virtual insurance companies and two virtual banks. In terms of cultivating technology companies, Cyberport undoubtedly has unparalleled insight into the needs of start-ups from initial stage to mature stage.
But innovation and entrepreneurship are only part of the story. For the Web3 industry to succeed, we need to nurture an ecosystem to realize the full potential of this new field. Therefore, Cyberport has been working with various partners and stakeholders to promote the development of the Web3 industry by cultivating talents, promoting applications and enhancing public awareness.
We are entering a new era of Web3 innovation. Cyberport is committed to attracting more leading companies and cutting-edge technical talents, strengthening support and resource investment, so as to cultivate stronger technological innovation forces, and further promote the high-quality development of Hong Kong's economy and Web3 industry .
I am excited about the potential of Web3 technology to change the world, and I look forward to the birth of more innovative projects and enterprises in the "Cyberport Web3 Base". Thanks!
