Hong Kong’s Securities and Futures Fee chief Julia Leung says Bitcoin is clearly exhibiting its energy to remain as an “different asset.”
Bitcoin, the most important crypto by market capitalization, is right here to remain because it succeeded over the previous 15 years to outlive a number of cycles of “growth and bust,” Hong Kong’s Securities and Futures Fee (SFC) chief Julia Leung says.
Talking on the Greenwich Financial Discussion board, the SFC boss Leung acknowledged the prevailing skepticism amongst central bankers and economists relating to the intrinsic worth of cryptocurrencies.
But, Leung underscored the truth that over the previous 15 years, Bitcoin “has survived a number of cycles of growth and bust, clearly exhibiting its endurance in its place asset,” although she needed to level out that her help leans extra in the direction of Bitcoin’s underlying expertise — distributed ledger (DLT) — reasonably than the cryptocurrency itself.
“The potential advantages of DLT are plain to see. It has the potential to boost effectivity and decrease prices within the distribution, clearing, settlement, and custody of real-world property.”
Julia Leung
The SFC head additionally addressed the hype round non-fungible tokens (NFTs), saying that whereas digital collectibles “could also be a fad,” the enabling expertise is being “more and more utilized in real-world property.” As per Leung, tokenization could result in “wider monetary inclusion, fractionalization, custody and possession, all on chain.”
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Nevertheless, Leung admitted that the total realization of those advantages within the monetary sector would require vital developments to be made. She significantly famous the need for blockchain networks to scale up and mature, emphasizing the significance of interoperability throughout distributed networks amongst monetary establishments and throughout borders.
Hong Kong’s constructive stance in the direction of cryptocurrencies is clear because the area goals to place itself as a crypto-friendly hub, highlighted by the latest approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs). Nevertheless, regardless of this progress, authorities seem like taking a troublesome stance in the direction of unlicensed crypto exchanges, threatening to close down all unlicensed crypto exchanges within the area.
Learn extra: Hong Kong SFC to hold out onsite inspections for crypto license candidates