Report: DeFi and the Metaverse Boost the Development of Hong Kong's Fintech

ChainCatcher news, according to Cointelegraph, a study supported by the Hong Kong government indicates that decentralized finance (DeFi) and metaverse technologies will become new opportunities to enhance the region's global fintech competitiveness. The research department of the Hong Kong Financial Academy (AoF), the Hong Kong Institute for Monetary and Financial Research (HKIMR), released two reports on June 25, detailing the impact of DeFi and the metaverse on the financial industry.

The reports show that the DeFi market has grown from a market value of $6 billion in 2021 to over $80 billion in 2023, demonstrating its enormous potential. However, DeFi remains a largely undeveloped market, with over 70% of crypto enterprises yet to venture into this field. Despite issues such as governance, compliance, and vulnerabilities, the research remains optimistic about the unique characteristics of DeFi, believing it has the potential to offer new financial services such as liquid staking, flash loans, and automated market makers.

In terms of the metaverse, although local financial institutions have shown high interest, actual participation remains moderate. Over 51% of respondents are skeptical about the future potential of the metaverse, but some Hong Kong fintech companies are actively promoting related developments.

The Dean of the Hong Kong Financial Academy and Executive Director of HKIMR, Feng Haoran, stated: "Emerging technologies such as DeFi and the metaverse are closely related to the broader development of virtual assets and Web3, and may bring various opportunities to Hong Kong's financial services industry."