Animoca co-founder Yat Siu shed light on the fascinating link between Hong Kong’s increasing crypto use and China’s attitude toward cryptocurrencies at a recent Ethereum Community Conference (EthCC).
Siu’s insights suggest that Hong Kong’s enthusiastic embrace of cryptocurrencies and Web3 technologies reflects broader shifts occurring in mainland China, indicating the country’s growing interest in the transformative potential of decentralized technologies.
During his address on July 19, Siu pointed out China’s significant move in May when it released its Web3 white paper, vocally endorsing Web3 as the future of the Internet. While the white paper did not specifically address cryptocurrencies, the implications extend beyond Hong Kong alone, as mainland China dedicates substantial resources to thrive in the Web3 domain.
This is interesting because it’s not really just about what’s happening in Hong Kong. It’s really a message that’s coming from, you could say, high above. And Hong Kong wouldn’t do anything without the approval of China.
This development coincided with Hong Kong’s announcement to permit retail cryptocurrency investments, setting the stage for a momentous shift in the region’s financial landscape. Hong Kong’s progress in the crypto sector has also drawn the attention of China Central Television, the nation’s primary TV network, which reported on the impact of this growth.
In Siu’s keynote, he highlighted the significance of promoting a new technological paradigm and emphasized the dangers associated with relying on digital giants like Google, Apple, and Facebook for digital dominance. For China, challenging the technological hegemony of the United States is particularly crucial in its pursuit of de-dollarization.
That’s actually another big agenda item, which is why Japan, Korea, China, all these places are pushing Web3 in a really big way because they see that as an opportunity to break away from basically U.S.-dominant technologies.
The People’s Bank of China banned cryptocurrency-related operations in September 2021, yet despite the limitations, mainland China has remained a significant center for cryptocurrency mining. This contradictory strategy suggests that, despite its regulatory attitude, China recognizes the promise of cryptocurrencies and decentralized technology.
The proactive implementation of crypto-friendly policies in Hong Kong has given enthusiasts and experts optimism. Many believe that given China’s rising interest in Web3 technology, the nation may soon overturn its long-standing prohibition on cryptocurrencies. However, recent remarks by important figures, such as the CEO of CPIC Investment Management, Chenggang Zhou, reinforcing China’s anti-crypto attitude, signal that the ban is anticipated to last for a while.
Hong Kong’s Crypto Trajectory Is Intertwined With China’s Approval
Underscoring the intimate ties between these areas is the connection between Hong Kong’s developments in the crypto industry and China’s acceptance. As China embraces the revolutionary potential of Web3 technologies, China’s policies, and regulatory choices in this fast-growing sector will unavoidably determine the future trajectory of Hong Kong’s crypto scene.
Hong Kong and China’s relationship, with one location having an impact on the other, presents an intriguing story for the world of cryptocurrencies and decentralized technology. The impact of China’s acceptance of Web3 and Hong Kong’s adoption of cryptocurrencies might influence the future of banking and technology on a worldwide scale, as the global crypto community waits with bated breath.