In two short decades since its establishment, Hong Kong’s Cyberport has experienced extraordinary growth, fulfilling its original promise as the principal force behind the government’s Web3 aspirations. Meanwhile, China is advocating for increased cooperation with both developed and developing countries to address the pervasive digital divide.
According to a discussion paper recently published by Hong Kong’s Legislative Council, Cyberport now hosts more than 270 Web3 entities, a significant increase since its founding. The paper also highlighted Cyberport’s impressive strides, updating the public on the initiative’s progress in Web3 development.
The comprehensive 14-page report indicates that the government-owned commercial hub is now at the forefront of Hong Kong’s burgeoning technology ambitions, fostering the advancement of blockchain technology, artificial intelligence (AI), and Big Data.
The document reveals that 270 blockchain firms have found a home at the hub, with three achieving unicorn status. These companies are creating innovative solutions in areas such as smart living, digital entertainment, fintech, and data security, all with the aim of cultivating a dynamic ecosystem.
While the majority of these firms are local enterprises, 15% of the Web3 companies hail from Mainland China and other countries, including the United States and the United Kingdom.
A core component of Cyberport’s strategy is the support of emerging startups, providing capital and regulatory assistance. An incubation program has provided up to $500,000 in grants to new startups, in addition to technical support and consultancy services.
For firms looking to transform their blockchain-based ideas into prototypes, the Cyberport Creative Micro Fund offers $100,000 in support to each startup, with up to 30 firms receiving up to $200,000 for market research activities.
Besides financial support, Cyberport is actively working to expand its partner network, signing Memoranda of Understanding (MoU) with several entities. Earlier this year, Cyberport entered into an agreement with Hangzhou Shangcheng District, and also teamed up with U.S.-based Draper Dragon to launch a Web3 Accelerator Program.
Key to this strategy is Cyberport’s effort to attract a steady stream of investors for budding companies. In 2017, they launched the Cyberport Investor Network, followed by the introduction of the Web 3.0 Investors Circle (W3IC), which focuses on blockchain-based companies showing significant potential.
Cyberport is also dedicated to nurturing individual talents to fuel the blockchain revolution in the region, initiating an internship program that matches university students with blockchain firms.
Hong Kong has emerged as a beacon in the region for Web3, thanks to a range of government policies aimed at enhancing the sector. Foreign Web3 firms are enticed with tax incentives and licensing subsidies to set up operations in Hong Kong, and the banking regulator has encouraged financial institutions to extend banking services to these new players.
A clear and detailed playbook is seen as a positive step for service providers and investors, while an active regulatory watchdog ensures compliance duties. As digital assets continue to flourish, Hong Kong is investigating the potential of a central bank digital currency (CBDC) to enhance local and cross-border payments.
Simultaneously, while the Special Administrative Region is honing its Web3 ambitions, China has taken up the challenge to bridge the digital divide between countries globally, advocating for greater collaboration and resource sharing among nations.
In a speech at the World Internet Conference in Wuzhen, Chinese President Xi Jinping pledged his country’s support for efforts to democratize the Internet, underlining the need for developing countries to keep pace with advanced economies.
Xi noted the rapid development and swift adoption of emerging technologies like AI, Internet of Things (IoT), Web3, and Big Data. He cautioned that advanced economies could easily outpace underdeveloped nations, exacerbating the digital divide.
Chinese Vice Premier Ding Xuenxiang reinforced Xi’s message, highlighting the potential knock-on effects of the growing digital divide between nations. Ding pointed to potential cybersecurity risks, income inequality, education disparity, and dependency risks as potential issues
