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Hong Kong Securities and Futures Commission head Julia Leung says bitcoin is clearly showing its staying power as an “alternative asset.”
bitcoin, the largest cryptocurrency by market cap, is here to stay, having managed to survive multiple 'boom and bust' cycles over the past 15 years, says Hong Kong Securities and Futures Commission (SFC) chief , Julia Leung.
Speaking at the Greenwich Economic Forum, SFC chief Leung admitted 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 multiple boom and bust cycles, clearly showing its staying power as an alternative asset,” although he had to point out that its support leans more towards underlying technology of bitcoin. – distributed ledger (DLT), rather than the cryptocurrency itself.
“The potential benefits of DLT are evident. “It has the potential to improve efficiency and reduce costs in the distribution, clearing, settlement and custody of real-world assets.”
Julia Lee
The SFC director also addressed the hype around non-fungible tokens (nfts), saying that while digital collectibles “may be a passing fad,” the enabling technology is “increasingly being used in assets around the world.” real”. According to Leung, tokenization can lead to “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 progress. In particular, he highlighted the need for blockchain networks to grow and mature, emphasizing the importance of interoperability between networks distributed between financial institutions and across borders.
Hong Kong's positive stance towards cryptocurrencies is evident as the region aims to position itself as a crypto-friendly hub, highlighted by the recent approval of bitcoin and ethereum spot exchange-traded funds (ETFs). However, despite this progress, authorities appear to be taking a tough stance towards unlicensed crypto exchanges, threatening to shut down all unlicensed crypto exchanges in the region.
