Last Friday, I delivered a speech at the opening ceremony of the 2023 Digital Entertainment Leaders Forum.
Financial Secretary Paul Chan of the Hong Kong SAR Government published a blog on the 27th, stating that the next wave of breakthrough growth in the Internet is likely to be driven by the third generation of the Internet (Web3) and blockchain technology. NFT, GameFi, Play to Earn, "immersive" entertainment, etc. are all directions that many global entertainment giants are currently investing resources in exploring. Web3's core blockchain technology, with its characteristics of disintermediation, security, transparency, immutability and low cost, can be applied to many fields such as finance, commerce, trade, supply chain management, and even daily life. The Hong Kong SAR government is also actively applying Web3 technology.
For example, in February this year, the Hong Kong Monetary Authority issued the world’s first tokenized green bond issued by a government, bringing together bonds and other related financial instruments, participants and activities on a single digital platform to improve the efficiency of the entire process. Efficiency, traditional bond issuance usually takes 5 business days (T+5), significantly shortened to 1 business day (T+1). To accelerate the development of Web3, I allocated $50 million in this year's Budget to the Cyberport to accelerate the establishment of a thriving Web3 ecosystem, including actively attracting enterprises and talents to settle here, and organizing relevant education and promotion activities.
To date, Cyberport has gathered more than 180 Web3-related technology companies, including unicorns, licensed virtual asset trading platforms, etc., with more than 20% of the companies coming from the mainland and overseas.
The following is the full text of the blog:
Entertainment without borders Web3 new horizon
Travel between virtual worlds, interact with comic characters on adventures, and exercise; or let your avatar wear beautiful fashion shows by internationally renowned designers. These new experiences that combine reality and virtuality can be It adds a new dimension to our leisure and entertainment life; it also contains huge new business opportunities and creates new economic value.
The application and continuous evolution of innovative technologies are one of the main driving forces for the rapid expansion of the entertainment industry in recent years. Driven by digital technology, digital entertainment is an economic industry with huge potential. A research report predicts that the global online entertainment market revenue will increase from US$184.2 billion in 2021 to US$653.4 billion in 2027, with a compound annual growth rate of 21%. The development potential is amazing and the space is huge.
The rapid popularization and continuous improvement of mobile Internet and smart phone technology have created explosive growth in streaming music, streaming video, social platforms, and mobile games over the past decade. Next, the next wave of breakthrough growth is likely to be driven by the third generation Internet (Web3) and blockchain technology. NFT, GameFi, Play to Earn, "immersive" entertainment (immersive entertainment), etc. are all directions that many global entertainment giants are currently investing heavily in resource exploration.
Recently, Cyberport held the three-day annual event "Digital Entertainment Leaders Forum" with the theme of "Entertainment Power UP! Web3 New Vision". More than 90 speakers from more than 30 countries and regions shared how digital entertainment technology can bring new experiences to different aspects of art, education, sports and life in the Web3 era, and discussed the application of Web3 in life and opportunities. More than 3,500 people participated onsite and online, and the response was enthusiastic, showing that the development of digital entertainment in Hong Kong is very prosperous.
The forum is also one of the "Happy Hong Kong" series of activities. There are augmented reality (AR) games, smart sports walls, simulated racing experience and application workshops, etc., as well as local snacks. It is a great place for leisure and entertainment. Everyone is welcome to attend with your relatives and friends.
This forum is also one of the "Happy Hong Kong" series of activities. Professor Sun Dong, Secretary for Innovation, Technology and Industry, and I experienced augmented reality games.
High-quality entertainment experience can stimulate consumption and promote the economy. We are working hard to seize the opportunities of the new wave of digital entertainment development. At present, Cyberport has gathered about 170 companies engaged in digital entertainment, involving metaverse, game development, game big data analysis, research and development of e-sports equipment and peripherals, etc.
Many of these companies are also actively applying Web3 and other latest technologies and have achieved good results. For example, a local digital health start-up partnered with Marvel Entertainment this year to launch the world's first immersive interactive (immersive interaction) fitness adventure application, players can exercise and exercise with comic characters; and another start-up game The Metaverse game launched by the company entered the Japanese market earlier and accumulated more than 145,000 members on the social channel in just six months.
Web 3 has developed rapidly in recent years, and its technical applications are not limited to digital entertainment or virtual assets. Web3's core blockchain technology, with its characteristics of disintermediation, security, transparency, immutability and low cost, can be applied to many fields such as finance, commerce, trade, supply chain management, and even daily life, through technological innovation and application innovation to solve many real-life pain points and difficulties.
That day was also the opening of Cyberport’s “Web3 Life Experience Center”. I hosted the opening ceremony and visited the exhibits in the museum.
On the same day, I also opened the "Web3 Life Experience Center". The museum demonstrates how Hong Kong enterprises apply Web3 technology in different aspects of life and business to improve efficiency and allow innovative ideas to create new economic value. For example, farming farmers have been facing the pain points of financing difficulties. Some start-ups use blockchain and Internet of Things technology to track and monitor the location, health status and growth rate of each animal in real time. Since the data on the blockchain cannot be tampered with This characteristic strengthens the credibility of the data and gives financial institutions the confidence to accept livestock as collateral and provide financing. In addition, a local bank is developing a "programmable payment solution" in Cyberport, using programmable tokens for smart contracts to achieve more efficient public, commercial and personal payments. Another local start-up company is cooperating with famous international fashion designers. Through 3D scanning technology, visitors can try on the designer's fashion in the virtual world. These cases all reflect the spirit of local enterprises and start-ups to keep pace with the times, have the courage to innovate, and have the ability to make breakthroughs.
The SAR government is also actively applying Web3 technology. For example, in February this year, the Hong Kong Monetary Authority issued the world’s first tokenized green bond issued by a government, bringing together bonds and other related financial instruments, participants and activities on a single digital platform to improve the efficiency of the entire process. Efficiency, the traditional bond issuance usually takes 5 business days (T+5), significantly shortened to 1 business day (T+1).
To accelerate the development of Web3, I allocated $50 million in this year's Budget to the Cyberport to accelerate the establishment of a thriving Web3 ecosystem, including actively attracting enterprises and talents to settle here, and organizing relevant education and promotion activities. So far, Cyberport has gathered more than 180 Web3-related technology companies, including unicorns, licensed virtual asset trading platforms, etc., and more than 20% of the companies are from the mainland and overseas.
As for the third-generation Internet development task force chaired by me, a meeting has also been held. The group brings together relevant industry leaders and professionals to assist the government in steadily promoting the vigorous and sustainable development of Web3 in Hong Kong from aspects such as regulatory framework, ecosystem, infrastructure, talent training and education promotion.
As an international financial center and a metropolis that attaches great importance to innovation and technology, we must sometimes grasp the general trend of innovation and technology development without a sense of urgency, and actively lead and drive innovative exploration and development under the premise of prudence and appropriate supervision. Let Hong Kong take advantage of this fiercely competitive wave of technological innovation to develop its economy and benefit its citizens.
August 27, 2023
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