Blockchain technology
“However, the issue is that many eWallets do not work with others. We want to facilitate frictionless global money transfers, which is what the unbanked needs. Blockchain can help with matters like e-KYC (know your customer), credit scoring and smart contracts.”
Phang Yew Kiat, vice-chairman and chief executive officer of Chong Sing Holdings FinTech Group — a Hong Kong-listed company that provides intelligent financial lifestyle services — has invested more than $100 million in blockchain in the past three years.
“If the internet is equivalent to info highway without memory, then blockchain is internet information with immutable transaction records,” said Phang.
“But, the things that keep me awake are the challenges in the coming months and years. There are still not enough government regulations and endorsement; no one standard in the technology supporting blockchain today and in the future; a lack of definitions that could lead to misinterpretations; and not enough talents and qualifications.”
Other worrying issues include the rise of cryptocurrencies and the possible displacement of traditional hubs of finance.
“There are around 1,889 cryptocurrencies as of Aug 24. A lot of it has been pump-anddump scams,” said Pindar Wong, chairman of VeriFi (Hong Kong) — an internet financial infrastructure consultancy — and head of the Belt and Road Blockchain Consortium.
“Hong Kong is the consummate middle person. What happens when that role disappears? How would it be affected?” he asked.
He said the answer may lie in the Belt and Road Initiative.
“Islamic finance and green finance might be where the next opportunities lie. Onethird of the countries involved in the BRI would require Shariah-compliant smart contracts, which is what blockchain can deliver. And, of course, environmental financing is needed by all,” Wong said.
He urged Hong Kong to seriously consider using blockchain to solve the issue.
“With the rebalancing of trade in the trade war, everyone requires tech that can account for the new flows of trade. Whoever solves the problem will help shape the future of business and trade,” said Wong.
“The BRI is the answer and Hong Kong has a role in dealing with the intangibles. With the verification benefits of blockchain, it also simplifies a geopolitical discussion.”
Members of the audience were on the same page.
Bruce Cheung, acting head of HKU SPACE’s College of Life Sciences and Technology, believes it’s important for Hong Kong to pick up on blockchain technology to be the “digital gateway” to China.
“Hong Kong can act as the data storage hub for both international and Chinese businesses. It’s important for Hong Kong to learn how to fully harness and utilize the power of blockchain technology to be at the forefront of this revolution,” he said.
“Blockchain is truly shaping the future of business, and countries like the UK have invested heavily in it. Hong Kong has been a bit slow in adopting it despite a lot of discussions. But, we need to step it up,” he added.