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The Role of Web3 in the Three Circles of Hong Kong’s Economy

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On April 12, it was reported that at the Web3 Hong Kong Carnival Summit held today, Liu Huiping, Vice President of the Hong Kong Trade Development Council, said that Hong Kong\’s ec

The Role of Web3 in the Three Circles of Hong Kong’s Economy

On April 12, it was reported that at the Web3 Hong Kong Carnival Summit held today, Liu Huiping, Vice President of the Hong Kong Trade Development Council, said that Hong Kong’s economy includes three circles, namely trade and manufacturing, logistics, financial and capital markets, and the digital economy. Web3 can also help the achievements of the previous two circles and become a leader. I suggest that the next development of Web3 should help the real economy, financial markets, and capital markets, which will also have more promotion and assistance for Web3. Liu Huiping said that in the past three years, Hong Kong’s small and medium-sized enterprises have also been the main service targets of the Hong Kong Trade and Development Council. These small and medium-sized enterprises have been greatly impacted by the epidemic, and their business has been greatly affected. If Web3 can help small and medium-sized enterprises solve their pain points, you can immediately enter 98% of the Hong Kong economy, because 98% of the Hong Kong economy is composed of small and medium-sized enterprises, and the potential here is enormous.

Vice President of the Hong Kong Trade and Development Council: If Web3 can solve the pain points of small and medium-sized enterprises in Hong Kong, the Trade and Development Council will be very willing to cooperate

Introduction

At the Web3 Hong Kong Carnival Summit on April 12, Liu Huiping, Vice President of the Hong Kong Trade Development Council, emphasized the significance of the digital economy in Hong Kong’s economy. According to Liu Huiping, Hong Kong’s economy is based on three circles: trade and manufacturing, logistics, and financial and capital markets, with the digital economy serving as a vital enabler to these circles.

The Three Circles of Hong Kong’s Economy

Trade and Manufacturing

Hong Kong has a long history of being a hub for trade and manufacturing, which has enabled the city to become a leading financial center in the Asia-Pacific region. The current pandemic has impacted global trade, resulting in supply chain disruptions for manufacturing companies worldwide. However, the integration of Web3 technology in Hong Kong’s trade and manufacturing sector can improve supply chain traceability and transparency, leading to more efficient trade processes.

Logistics

As one of the busiest ports in the world, Hong Kong’s logistics sector is crucial in connecting the East with the West. The adoption of Web3 technology in logistics can enhance the tracking and monitoring of shipments, enabling real-time visibility for all parties involved in the logistics chain.

Financial and Capital Markets

Hong Kong’s status as a global financial center is well-established. The adoption of Web3 technology can lead to a safer financial system through the use of blockchain-based digital identities and the elimination of intermediaries, reducing the need for trust between various financial actors. Such a system can lead to a more efficient and transparent capital market.

The Digital Economy

The digital economy, as Liu Huiping mentioned, is becoming an increasingly critical component of Hong Kong’s economy. The integration of Web3 technology can enable micro-enterprises to interact with their customers or suppliers directly, reducing transaction costs and empowering these small businesses.

Web3’s Role in Hong Kong’s Economy

Real Economy

The integration of Web3 technology can help solve the current pain points that small and medium-sized enterprises (SMEs) are experiencing due to the pandemic. By enabling these businesses to go digital, Hong Kong’s economy can improve in terms of efficiency and resilience.

Financial and Capital Markets

Web3 technology can also help with Hong Kong’s financial and capital markets. By adopting blockchain-based digital identities, Hong Kong’s financial system can become more secure and lead to a more efficient market.

Promotion and Assistance for Web3

In addition to benefiting the real economy, Web3 can also benefit from its adoption in Hong Kong. The city’s welcoming business environment and growing digital economy can foster a Web3 ecosystem that can serve as a model for other regions in the world.

Conclusion

Web3 technology can play a substantial role in determining the future direction of Hong Kong’s economy. As Vice President Liu Huiping stated, the integration of Web3 technology into the city’s three circles of trade and manufacturing, logistics, and financial and capital markets can foster more efficient processes and add value to various aspects of Hong Kong’s economy.

FAQs

Q: What is Web3 technology?

A: Web3 technology refers to the next evolution of the internet, which aims to decentralize the internet and restore user privacy and security.

Q: How can Web3 technology benefit SMEs in Hong Kong?

A: By enabling SMEs to go digital, Web3 technology can reduce transaction costs and enhance the overall efficiency of Hong Kong’s economy.

Q: Why is Hong Kong’s financial system important?

A: Hong Kong’s financial system is vital because it is a global financial center and is connected to various financial markets worldwide.

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