Bitcoin
Hong Kong SFC Chief Praises Bitcoin
Hong Kong Securities and Futures Commission chief Julia Leung says Bitcoin is clearly showing its staying power as an “alternative asset.”
Bitcoin, the largest cryptocurrency by market capitalization, is here to stay as it has managed to survive multiple “boom and bust” cycles over the past 15 years, the Hong Kong Securities and Futures Commission said.CFS) says boss Julia Leung.
Speaking at the Greenwich Economic Forum, SFC chief Leung recognized the prevailing skepticism among central bankers and economists regarding the intrinsic value of cryptocurrencies.
However, Leung highlighted the fact that over the past 15 years, Bitcoin “has survived several boom and bust cycles, clearly showing its staying power as an alternative asset,” although she had to point out that its support leans more to the underlying technology of Bitcoin. — distributed ledger (DLT) — rather than the cryptocurrency itself.
“The potential benefits of DLT are clear. It has the potential to increase efficiency and reduce costs in the distribution, clearing, settlement and custody of real-world assets.”
Julia Leung
The SFC chief also addressed the excitement surrounding non-fungible tokens (NFTs), stating that while digital collectibles “may be a fad,” the enabling technology is being “increasingly used in real-world assets.” According to Leung, tokenization can bring “broader financial inclusion, fractionalization, custody and ownership, all on-chain.”
However, Leung admitted that fully realizing these benefits in the financial sector would require significant advances. She particularly noted the need for blockchain networks to grow and mature, emphasizing the importance of interoperability between distributed networks across financial institutions and across borders.
Hong Kong’s positive stance towards cryptocurrencies is evident as the region aims to position itself as a cryptocurrency-friendly hub, highlighted by the recent approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs). However, despite this progress, authorities appear to be taking a tough stance on unlicensed crypto exchanges, threatening to shut down all unlicensed crypto exchanges in the region.