This news article is about the development prospects of the virtual asset market in Hong Kong, as discussed in the HashKey New Horizons event at the Hong Kong University of Science and Technology. Professor Wang Yang, a renowned mathematician and the Vice President (University Extension) and Chair Professor of Mathematics at the university, has made significant contributions to the development of big data and biointelligence fields, and has a deep understanding and thoughts on the blockchain industry and government policy-making.
In 2012, when I flew from the United States to Hong Kong and then to Shanghai, a friend of mine, who was my student at the time, picked me up at the airport. He told me that he was now interested in Bitcoin and suggested that we do something together. At that time, I thought Bitcoin and blockchain were scams, so I didn’t pay much attention.
In 2014, when I came to Hong Kong again, he picked me up again. He said there was a young man who was very smart and suggested that I take a look. I still held the same opinion and thought they were all scammers. But later, they found Xiao Feng. I realized that I missed two very good opportunities, and it was a painful lesson. Now, because I missed these two very good opportunities, I always feel that I am not qualified to tell everyone what to do in the future.
However, I feel that in these years, I have become quite familiar with this industry, and I often communicate with the government on policy matters. But they may not like to hear me speak because I always feel that their efforts are too small.
From another perspective, I think Hong Kong’s pace in terms of service is too slow. We seem to be satisfied with the status quo. Hong Kong should have a higher goal, determination, and even a belief to lead the development of the entire region, including the future of blockchain technology. Recently, I have been discussing the development of digital currency. I believe that regardless of the outcome of the US-China trade war, pure digital asset markets like Bitcoin will definitely exist and may become larger. But we should not be satisfied with the current stage. I believe that the ultimate prospect of the economy needs to be combined with the real economy. It is a rigid demand.
From any perspective, this is a rigid demand for China as well. For example, Huawei has become China’s largest beef supplier. Why is that? Transsion, a very successful mobile phone company in Africa, may be known by many people. But how many people know that Transsion is also China’s largest coffee supplier? This is because the local currency is easily devalued, and they use currency data to purchase beef, which is a strong currency.
I have had discussions with many trade departments in China, including visiting Yiwu. For example, only half of the money from the goods sold in Yiwu can be received in RMB or strong currency, and the rest is local currency, which is not valuable. The problem we face is how to use these currencies. Argentina has what we need in China, such as lithium mines and beef.
So here is a problem, in my opinion, why future development is very important. I often bring this up at the government level, but it is not always accepted. But I think the integration of the real economy through digitization is an important condition for the development of the next generation. Of course, there is also the combination with artificial intelligence, in which we are also doing well.
These futures all have directions for development, but this direction requires more forward-thinking and consideration of how to seamlessly connect decentralized technology with regulation on the chain and share it with the regulation of the real economy. This is actually very good, but because it is challenging, as someone said, the reason we send people to space is because it is difficult. This is also true for Hong Kong. We should have a simpler way out to let the region that has already started to profit move out of this scope. What to do next, I feel it is a question that needs to be discussed separately.
Since October 31, 2022, Hong Kong’s progress in related policies has been slow, and I hope the pace can be accelerated. Currently, the challenges we face include a shortage of talent, especially in the field of approvals.
I have also noticed that there are problems with our procedures. For example, when discussing the digital economy, I once communicated with a government official and learned that there are nearly 50 members on the membership list of a government committee. There was a study in the United States that said if a committee has more than 7 people, each additional person reduces efficiency by 15%. With 50 people, your efficiency is 0.85 to the power of 43, which is almost 0. Therefore, I think we need reforms to avoid formalism.
Regarding talent cultivation, the Hong Kong University of Science and Technology has been working hard. We encourage students to collaborate with the industry, propose projects, and form teams. HashKey has provided a lot of support to our students, and we also hope Futu Securities can provide support.
I am very surprised to find that our young people are extremely creative. Some students may not have good academic performance, but when they encounter projects they like, they will go all out and put in great enthusiasm.
However, Hong Kong still needs to strengthen its emphasis on cultivating innovation. The development of Web3 not only requires funding but also the establishment of a good ecosystem, good policies, and the attraction of talent. Currently, Hong Kong’s talent program mainly targets high-end talents and neglects the importance of mid-level talents. We suggest that a complete Web3 ecosystem should be built by attracting a large number of talents, rather than relying solely on traditional models with large capital investment.
In fact, after a new round of cleanup, it is difficult to completely eliminate unlicensed institutions to a large extent. If I don’t do business as a Hong Kong citizen in Hong Kong, there is no reason to drive citizens away, right? I think they should definitely not be driven away. In a sense, these people will bring some vitality to Hong Kong’s virtual asset ecosystem.
But for your question just now, I really don’t have a good answer. I have had discussions with some leaders, and I think completely banning mining is a very unwise approach because the ultimate result is that the miners will be driven to the United States or elsewhere. The US media once published an article saying that it is a $4 billion tax windfall because after these people went to the United States, they contributed tax revenue to the United States.
Personally, I have a view that I said at the time not to drive them away. Instead of worrying about capital outflows and other issues, it is better to let state-owned enterprises mine or invest in mining. For example, each mining farm should have at least 20% participation from state-owned enterprises, which solves the problem and ensures risk control. Of course, this is something in the past.
I think there is still a very big problem now, which is that as soon as cryptocurrencies are mentioned, it immediately becomes a situation that is difficult to control. But China’s strategy may really need to go down this path. My personal view is that if Trump comes to power, China will need to reevaluate all these policies in a very short period of time.
At this time, it is impossible to stop China’s trade just because there is a threat. So China must have a bottom line thinking. Of course, China is now developing socialism and its own stage system, but the quantity is not much at the moment. The next step, especially in the development of “One Belt, One Road” countries, will ultimately have to go out of the path of RWA tokenization. Through RWA tokenization, if everyone can truly realize its importance, it may not be useless.
If this happens, I think the market will open up. I think there will be a breakthrough in about three years, that is, people may rethink what digital assets are and whether we should embrace digital assets. This is my personal prediction. However, I have also predicted that Bitcoin is a scam, so take it with a grain of salt.
Tags:
Wu Shuo Blockchain
Bitcoin
Wang Yang
Source link:
https://mp.weixin.qq.com/s/f3ldeJpP0ucxjD0ZVzeVkQ
Note: The views expressed in this article do not represent investment advice.
