TechFlow reported that Hong Kong Legislative Council member Chen Zhongni recently issued a series of policy recommendations on "New Productivity - Empowering the Application and Development of Web3.0 in the Financial Industry". The legislator pointed out that Web3.0 is crucial to the innovation and efficiency improvement of the financial industry. Hong Kong has advantages such as advanced financial infrastructure and a sound legal supervision system in developing the Web3.0 industry, but it also faces challenges such as financial risk management and data security.

To this end, he put forward a number of suggestions, including that the government vigorously develops infrastructure to support the long-term development of Web3.0 and develops a basic blockchain platform with security, privacy protection, and high efficiency;

Expedite the development of a digital identity system and standards based on Hong Kong residents, and consider integrating it into the Smart Access platform;

Improve the compliance and regulatory framework in the Web3.0 encrypted digital field and use big data and artificial intelligence technologies to monitor market risks;

Establish a Web3.0 industry committee to formulate industry norms and standards;

Explore innovative combinations of Web3.0 and traditional finance, such as data connectivity between government departments and banks, and the integration of traditional financial services with Web3.0 technology.

In addition, he also suggested accelerating the launch of stablecoins denominated in Hong Kong dollars and collateralized by multiple assets, developing digital asset businesses centered on the digitization of real assets (RWA), formulating a legal system for the circulation of RWA tokens, and promoting seamless integration of traditional finance and the virtual asset ecosystem.