Blockchain Gets a Hold in the Fintech Scene of Hong Kong
Blockchain technology has been active for years now. And even though they often criticize it for its hype, it is currently deploying in supporting different industries. This includes the growing fintech sector in Hong Kong.
In addition to that, technology further disrupts the finance sector around the globe. With that, blockchain technology has put more layers of untapped potential that might deliver significant changes to fintech business models in the following years.
The pledge of this application is such that they expect the global blockchain in the fintech market to increase from $231.63 million in 2017 to $6700.63 million by 2023. Thus, it gives a tremendous compound annual growth rate (CAGR) of at least 75.2%.
Also, people expect North America to be the market leader due to the technical advancements and the presence of major players. However, Asia Pacific (APAC) seems to be the fastest-growing region in the sector. The rise in overall investments into blockchain technology solutions has led to this. And they will use this to affect business processes among the finance industry.
Hong Kong Fintech
Blockchain firms have settled on Hong Kong’s burgeoning fintech scene since the previous year. And it has approximately 39% of new startups in the country using distributed ledger technology within its operations.
A report from the Financial Services and Treasury Bureau of Hong Kong shows that blockchain is the fastest-growing segment in the nation’s fintech market. Then, WealthTech firms followed this with 20% of new companies using the tech.
Aside from that, blockchain vowed to correct inefficiencies in a lot of banks’ back-office set-ups – especially in procedures such as clearing and settlement. Yet, the most significant impact of this technology might have is to diminish fraud and cyber-attack in the financial world.
When it comes to banks, fraud is extremely expensive. It costs about $3.44 is costs for each dollar of fraud loss. Also, it continues to become worse with a boost in digital transactions.
Blockchain helps in curbing data breaking and other comparable fraudulent operations. And this would allow fintech businesses to share or transfer safe and unaltered information through a decentralized network.
Among the blockchain firms, distributed ledger solutions for enterprises became the largest of the sub-segment. It holds 45% of Hong Kong’s blockchain startups being enterprise solutions.
Then, the cryptocurrency coin exchange represents the second-largest sub-segment with 27% of blockchain firms, followed by trade finance settlement with 9%.
Furthermore, the report of the Financial Services and Treasury Bureau noted blockchain as part of a core collective of technologies. It brings about tectonic shifts in Hong Kong’s virtual banking sector. AI or Artificial Intelligence, big data, and cloud, were also part of the said transformational stack of technologies.
Africa’s Crypto Adoption
Elsewhere, an interactive map illustrates the level of cryptocurrency interest worldwide shows that Bitcoin (BTC) searches mostly concentrated in countries in Africa and South America.
In the search data, countries like Africa might turn into key crypto players in the future. A report stated that, back in July 2019, the Nigerian House of Representatives speakers called for a substantive legal framework for cryptocurrencies.
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