Hong Kong to Allocate HK$50M to Expedite Web3 Ecosystem Development

The Hong Kong government will allocate HK$50m from the 2023-24 government budget to expedite the Web3 ecosystem development. It will also establish a task force on virtual asset development to provide recommendations on the sustainable and responsible development of the sector.

Mr Paul Chan, Hong Kong Financial Secretary, mentioned the government's support to Web3 in his Budget Speech today. He said, "Cyberport established the Web3 Hub@Cyberport early this year. I will allocate $50 million to expedite the Web3 ecosystem development by, among other things, organising major international seminars, to enable the industry and enterprises to better grasp frontier development and to promote cross-sectoral business co-operation, as well as arranging a wide array of workshops for young people."

"Virtual assets are an integral part of a vibrant Web3 ecosystem. The policy statement on virtual assets issued in October last year has set out the Government's policy stance and approach towards the relevant sector. The market has responded proactively. Over the past few months, a large number of innovative enterprises with potential have been considering setting up business in Hong Kong. For the next step, I will establish and lead a task force on virtual asset development, with members from relevant policy bureaux, financial regulators and market participants, to provide recommendations on the sustainable and responsible development of the sector."

In terms of the adoption of CBDC, Mr Chan said, "We will continue to take forward the application testing and preparatory work for various financial technology infrastructure projects, including 'e-HKD' and 'e-CNY' as cross-boundary payment facilities."