The development of the Hong Kong dollar stablecoin is of great significance to Hong Kong's position in the Web3.0 field. It can not only serve as a bridge between traditional finance and the DeFi ecosystem, but also has the potential to become an indispensable part of the global financial system.
Article author: 0x9999in1
Source: MetaEra
Recently, MetaEra Hong Kong Zone was launched, and the "Hong Kong Crypto New Policy Two-Year Anniversary Celebration" series of activities took the lead in the launch. An important part of it is "High-end Dialogue: Hong Kong Web3.0 Influential Figures". The person interviewed in this issue is Qian Fenglei, Chairman of Hengfeng International Holdings Co., Ltd.
Introduction
Qian Fenglei is a well-known entrepreneur, senior investor and philanthropist. He is currently the chairman of Zhejiang Hengfeng International Holdings Co., Ltd., with businesses in mainland China, Macau, Hong Kong, Southeast Asia and other places. Qian Fenglei is well-known for his generous donations to charity. He has won the "Top Ten Charity Stars" award and has been shortlisted for many charity lists.
Highlights
● The core values of Web3.0 lie in openness, privacy and co-construction. It achieves decentralization through technologies such as blockchain and smart contracts, bringing new possibilities for financial services.
● I believe that the policies and measures taken by the Hong Kong government in promoting the development of Web 3.0 are very positive and forward-looking.
● The development of the Hong Kong dollar stablecoin is of great significance to Hong Kong's position in the Web3.0 field. It can not only serve as a bridge between traditional finance and the DeFi ecosystem, but also has the potential to become an indispensable part of the global financial system.
● The Hong Kong dollar stablecoin and the digital Hong Kong dollar (CBDC) can develop in a complementary manner. The digital Hong Kong dollar is suitable for circulation within Hong Kong, while the Hong Kong dollar stablecoin is more suitable for payment and settlement of cross-border trade and services.
● The development of the Web3.0 industry has also shifted from the grassroots era to the institutional era, and from a state of disorder to a state of gradual inclusion in the regulatory system.
● The application of blockchain technology in charity and public welfare not only improves transparency and efficiency, but also enhances public trust, which is crucial to the sustainable development of charity.
● Our external vision is: to become a great company like Alipay in the cryptocurrency world!
Full Interview
MetaEra: Mr. Qian, your company Hengfeng International has always been relatively low-key, and there are few related media reports on the Internet. Is your acceptance of an interview with our Web3.0 new media a major change in the company's external strategy?
Qian Fenglei: Hengfeng International has always focused on investment management in traditional finance and virtual fields. The company is currently undergoing an important transformation, namely a technology finance company driven by product technology, especially in the field of Web3-based payments. The industry is still in its early stages of rapid development and faces many challenges and uncertainties in terms of technological development, commercial application scenarios, compliance and supervision. It needs to integrate more resources including capital and manpower. We are very happy to tell you through this interview that we have just completed a special financing of US$100 million and plan to integrate more upstream and downstream resources in the industry to bring a new force to the development of the payment industry.
MetaEra: As an asset manager who has been deeply involved in the traditional financial field for many years, what do you think of Web3.0? What opportunities and challenges do you think it will bring to you or the traditional asset management industry? How will you respond?
Qian Fenglei: Web3.0 is generally considered to be the next generation of the Internet where all data and content are stored on the chain and owned by users. Its core appeal is to create a more decentralized and user-friendly environment and effectively fight back against centralized Internet monopoly giants. The core value of Web3.0 lies in openness, privacy and co-construction. It achieves decentralization through technologies such as blockchain and smart contracts, bringing new possibilities for financial services.
I think the opportunities provided by Web3.0 involve all aspects. In the field of investment, Web3.0 provides new investment areas, such as encrypted assets, NFT, DeFi, etc. These emerging fields have brought new growth points to the traditional asset management industry. In terms of improving efficiency, Web3.0 can reduce transaction costs, improve efficiency, and enable assets to be traded with low thresholds and high liquidity on a global scale through smart contracts and blockchain technology. In terms of data assetization, Web3.0 helps data assetization, realizes efficient circulation of data, and supports the high-quality development of the digital economy.
Despite this, Web3.0 is still facing many challenges. The three main challenges are regulatory uncertainty, technical risks and market volatility. Regulatory uncertainty refers to the fact that decentralized lending involves multiple financial regulatory policies in its actual operation. Regulatory policies of various countries are still in the research and exploration stage, and there is no mature regulatory model, so the industry faces the risk of regulatory policy uncertainty. Technical risks include risks that may be caused by technical problems such as smart contract vulnerabilities and blockchain network scalability. In addition, market volatility is also an aspect that many people are concerned about. Decentralized lending is based on the logic of rising coin prices and relies on infinite loop pledges for leveraged arbitrage, which may expand the price fluctuation range of the entire market during price increases and decreases.
Our response strategy includes strengthening regulatory cooperation, cooperating with regulators, and actively participating in the establishment of a regulatory framework to ensure business compliance. You may have seen that we are currently actively cooperating with relevant regulatory agencies of the Hong Kong government, and all businesses are being carried out in compliance. Another point is technological innovation and risk management. We will continue to pay attention to and invest in key technologies such as blockchain and smart contracts, and establish a corresponding risk management system to deal with technological risks.
MetaEra: As a licensed asset management company in Hong Kong, Hengfeng International has sent positive signals to virtual assets. Could you please tell us what virtual asset allocations you have made? As an asset management company that once managed tens of billions of dollars, does Hengfeng International have an estimated allocation ratio for crypto assets?
Qian Fenglei: Hengfeng International will enter this emerging market as a subsidiary company focusing on the Web3 field. We have actively allocated mainstream virtual assets in the current market and expect to further increase our positions in the future, but these are only some of our most basic asset allocations. Our core direction in the future is still financial technology, that is, we will invest heavily in the construction of Web3 infrastructure, especially in products and practices in the payment field. At present, we have begun active actions through self-research and mergers and acquisitions. We will soon announce our series of merger and acquisition plans to achieve the goal of rapid resource and industry integration.
MetaEra: Since the Hong Kong government issued the encryption policy in October 2022, the government has shown a positive attitude and policy support for the Web 3.0 industry, and private industry activities have been frequently held. For traditional financial practitioners in Hong Kong, how do you evaluate the policies and measures taken by the Hong Kong government to promote the development of Web 3.0? What other aspects do you think can be further strengthened?
Qian Fenglei: As a traditional financial practitioner in Hong Kong, I believe that the policies and measures taken by the Hong Kong government to promote the development of Web 3.0 are very positive and forward-looking. The following is my evaluation of the Hong Kong government's policies and the areas that I think can be further strengthened.
First, let’s look at policy support and market reaction. Since the Hong Kong government issued the “Policy Declaration on the Development of Virtual Assets in Hong Kong” in October 2022, it has shown a positive attitude and policy support for the Web 3.0 industry. This series of policies not only shows the Hong Kong government’s policy stance and guidelines on Web 3.0, but also sets the direction of future policy development, such as the policy on stablecoins and tokenized assets (RWA). The market responded enthusiastically, showing the positive impact of the policy.
Next is the indispensable regulatory framework and industry development. The Hong Kong government has successively introduced a series of supporting and regulatory policies, including the establishment of the Web3.0 Association, the Web3Hub Fund, and the implementation of a new licensing system for virtual asset service providers. These have provided a new starting point for the development of the Web 3.0 ecosystem. These measures will help establish a more standardized and healthy market environment and promote the sustainable development of the industry.
In order to ensure the steady development of Web 3.0, talent policies and resource investment are also important. The Hong Kong government has proposed a number of talent-related policies in its policy address, such as the establishment of a "Talent Service Office" and the expansion of the "High-end Talent Pass Program". These policies will help attract and cultivate the technological talents needed by the Web 3.0 industry. At the same time, the government has allocated HK$62 billion to invest in tracks that contribute to the future economy, including financial technology (including virtual assets and Web3), which shows the government's attention and investment in the Web 3.0 industry.
In summary, the Hong Kong government has adopted a series of positive policies and measures to promote the development of Web 3.0, but there is still room for further improvement and perfection, especially in terms of regulatory coordination, international cooperation and public education.
MetaEra: The Hong Kong government is exploring the possibility of turning the digital Hong Kong dollar (e-HKD) into a stable currency. We have seen that Hengfeng International has also strategically invested in one of the first three institutions for the Hong Kong dollar stable currency "sandbox" test. Can you reveal more details? And how do you view the development of the Hong Kong dollar stable currency?
Qian Fenglei: We have signed a confidentiality agreement with the investors, so it is not convenient to disclose more details for the time being.
The development of the Hong Kong dollar stablecoin is of great significance to Hong Kong's position in the Web3.0 field. It can not only serve as a bridge between traditional finance and the DeFi ecosystem, but also has the potential to become an indispensable part of the global financial system.
Although the stablecoin market is currently dominated by US dollar-backed tokens, as the regulatory framework consolidates, stablecoins backed by more fiat currencies are expected to grow. The development of Hong Kong dollar stablecoins faces the challenge of competing with US dollar stablecoins, but at the same time there is huge market potential, especially in areas such as cross-border payments and trade finance.
The Hong Kong dollar stablecoin and the digital Hong Kong dollar (CBDC) can develop in a complementary manner. The digital Hong Kong dollar is suitable for circulation within Hong Kong, while the Hong Kong dollar stablecoin is more suitable for payment and settlement of cross-border trade and services.
The development of Hong Kong dollar stablecoin is a complex but opportunity-filled field. The Hong Kong government has taken a series of positive measures to promote the development of this field, but more exploration and innovation are still needed in terms of technology implementation, market promotion, and regulatory coordination.
MetaEra: Faced with the continuous innovation of Web3.0, new projects are born very quickly. Have your company or individuals considered increasing investment in the primary sector? Will you set up a venture capital institution that focuses on investing in the Web3.0 field?
Qian Fenglei: Hengfeng International has entered this field through special fundraising, especially Web3 payment. Both the company and I will take an ALL-IN attitude in the future to continue to produce in this field and promote the construction of the industry. We have already started to invest in upstream and downstream companies in the industry, and the establishment of a professional investment institution focusing on the Web3 field is already within our planning scope.
MetaEra: Considering the rapid development and widespread application of Web 3.0 technologies, what strategic plans does your company have in the next five years to ensure it remains competitive in this emerging field?
Qian Fenglei: First of all, we will strategically focus on the field of Web3 payment. The only way for the industry to develop from infrastructure, public chains and protocols to the prosperity of DAPPs is payment, which is the same as the development path of Web2. This is a big track that requires a lot of resources. The development of this industry has also shifted from the grassroots era to the institutional era, and from the disordered state to a state of gradual inclusion in the regulatory system. Hengfeng was born at such a time node. With our senior background and resources in the traditional financial industry, we have just raised 100 million US dollars in financing, and this is just the beginning of our integration of traditional industries and the encryption industry. Our external vision is: to become a great company like Alipay in the currency circle!
MetaEra: You are passionate about charity and have been listed on the Forbes Charity List, ranking among the top 100 philanthropists. So in the Web 3.0 era, do you think blockchain technology can better serve charity and public welfare?
Qian Fenglei: Blockchain technology provides a decentralized database, and its transparency and immutability make the process of donations and resource allocation more transparent and credible. The public can track the flow of funds, ensure that donations are used correctly, and reduce the risk of corruption and improper use of funds.
Blockchain technology can create a decentralized fundraising platform, allowing donations to flow directly to beneficiaries and reducing intermediaries. Smart contracts can ensure that donations are automatically released according to agreed conditions, eliminating the trust issues of traditional platforms.
Smart contracts can record and execute charitable donation agreements in a programmatic form. Once certain conditions are met, such as raising a certain amount of money, the donation can be automatically released to the beneficiary. This not only reduces the risk of manual intervention, but also improves the efficiency of the donation process.
The traceability of blockchain can ensure the traceability of donations. Donors can track how their donations are used and ensure that they are correctly invested in projects, thereby increasing the public's trust in public welfare organizations and promoting the sustainable development of public welfare.
In summary, the application of blockchain technology in charity and public welfare not only improves transparency and efficiency, but also enhances public trust, which is essential for the sustainable development of charity. With the further development of technology, we have reason to believe that blockchain will play a more important role in social welfare and charity.
