Original title: "Follow the trend of Web3 and dare to be the "leader" of the digital economy", this article was originally published in Wenhui Daily
Written by: Wu Jiezhuang, Member of the Legislative Council of Hong Kong
Driven by cutting-edge technologies such as blockchain, artificial intelligence, and virtual economy, the Web3 (third-generation Internet) technological revolution is driving the innovative expansion and sustainable development of the digital economy, opening up and optimizing the capital investment market, and promoting the high-quality integration of the virtual and real economies and their industrial models, creating new market opportunities and competitiveness. The government should implement policies and actions simultaneously to demonstrate its determination and courage to be the "leader" of the digital economy. It should not only improve the top-level design, formulate a strategic development blueprint, and do a good job in risk supervision, but also strengthen the collaboration in the Greater Bay Area and make full use of both domestic and international markets.
Web3 is closely related to the application and innovation of virtual assets and the real economy, and uses disruptive innovative technologies to bring groundbreaking business models, production methods, and industrial organizations. In addition to the financial field, it also involves many non-financial applications, including NFT, metaverse, smart contracts, blockchain games, etc. In the future, more new technology applications will continue to emerge to reduce corporate operating costs and create new user experiences. Hong Kong has obvious advantages in development trends, geographical layout, and regulatory mechanisms, and is at the forefront of the Asia-Pacific region. However, as new technologies are changing with each passing day, the development of "Web3+" has both advantages and new challenges. The authorities must carefully and responsibly make forward-looking plans to improve the business environment, build new competitiveness, respond to new risks, ensure orderly market operations, and consolidate Hong Kong's position as an international financial center.
First of all, as the "future technology", Web3 has unpredictable opportunities and risks. The government's earlier "Policy Declaration on the Development of Virtual Assets in Hong Kong" and the introduction of a series of policy measures have taken an important step in the direction of developing Web3 and the digital economy. In the follow-up implementation stage, it is timely to improve the top-level design, formulate a short- and medium-term strategic development blueprint, ensure that policies and resources are in place, promote the construction of "Web3+" application scenarios, optimize the market ecology and business environment, reconstruct the new economic organization system and new business model, and promote new growth in the overall economy.
After all, the size of the local market is limited. Hong Kong must leverage its unique advantage of being "backed by the motherland and connected to the world" to build a hub bridge connecting the mainland and global markets, and set its development goals towards the mainland and international markets. At the same time, the government should turn its passivity into a proactive one, organize the industry to attract foreign investment and attract technology, promote the development of Web3 in Hong Kong and enhance the international competitiveness of the industry.
Focusing on Web3 and establishing an international innovative financing platform will not only help Hong Kong to leverage its traditional financial advantages, but also help it to build itself into a global digital technology center. It is recommended to refer to the mature model of existing companies going to Hong Kong for IPO, provide an innovative financing model for Web3, and create market trends and service competitive advantages to promote the development of the industry, attract upstream and downstream of the industrial chain at home and abroad to gather in Hong Kong, promote new development, and set a new benchmark.
The government should also work with the industry to increase efforts to attract foreign professionals and establish more innovative technology laboratories and incubators, which can not only promote innovative research and development and strengthen talent cultivation, promote new development and new applications of "Web3+", but also provide young people with a new development opportunity and direction.
In addition, in order to cope with the regulatory challenges arising from the development of Web3 in Hong Kong, the authorities should keep a close eye on the market and continuously update the regulatory mechanism to build a regulatory environment that can support technological innovation, protect the rights and interests of consumers and investors, and maintain financial stability. The relevant technologies should be widely integrated into daily life and business activities. Furthermore, the authorities should promote popular civic education on capital investment, clarify some one-sided or negative information about Web3 and the digital economy, and establish a sound market ecology.
