Hong Kong's Crypto Adoption Reflects Wider Moves in Mainland China, Driven by Web3's Potential to Challenge US Technologies
Hong Kong's Crypto Adoption Reflects Wider Moves in Mainland China
Hong Kong's rapid adoption of cryptocurrencies and Web3 is a reflection of wider moves happening in mainland China. China released a Web3 white paper in May, shortly after Hong Kong announced plans to allow retail crypto investments. While the white paper did not mention crypto, it is significant that mainland China is allocating a budget for advancing with Web3. Siu pointed out that news about Hong Kong's crypto developments was widespread in China, even featured on the national TV channel, China Central Television. According to Siu, Hong Kong would not make any crypto-related decisions without the approval of China.
Web3 Seen as a Way to Challenge U.S. Technologies and Reduce Dependency on the Dollar
Yat Siu argued that Web3 is a powerful tool to challenge the dominance of U.S. tech giants like Google, Apple, and Facebook. Siu highlighted the potential security risks of nations' dependence on these tech giants and stated that Japan, Korea, and China are actively promoting Web3 to break away from U.S.-dominant technologies. He emphasized that challenging U.S. hegemony is particularly important for China, which aims to reduce its dependency on the U.S. dollar. Siu noted that Web3 offers an opportunity for countries to have less reliance on the global currency. The adoption of Web3 in these places is seen as a way to facilitate de-dollarization.
Hope for China to Lift Crypto Ban Amid Hong Kong's Crypto-Friendly Regulations
With Hong Kong proactively adopting crypto-friendly regulations, there is hope among crypto observers that China may potentially lift its ban on crypto. However, several state-related executives, including CPIC Investment Management CEO Chenggang Zhou, have reiterated that China remains and will remain anti-crypto in the near future. China officially banned virtually all crypto activity in September 2021, but it continues to be one of the world's largest crypto mining hubs despite the ban. The news of Hong Kong's crypto developments has sparked discussions about the possibility of a change in China's stance toward cryptocurrencies. Yet, it remains uncertain whether China will ease its ban on crypto in the foreseeable future.
References
Cointelegraph By Helen Partz. (July 19, 2023). Hong Kong would not go crypto without China’s approval — Animoca exec. cointelegraph.com.
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