One in three Hongkongers expect to use crypto or central bank digital currencies for payments in the next five years, according to a survey from financial service provider FIS.
FIS surveyed more than 1,000 local consumers aged 18 or above in September and found that 23 percent plan to use digital currencies to pay for some goods and services, while 12 percent expect them to become their main method of payment.
CBDCs emerged as the preferred type of digital currency even though they are yet to be formally launched on the market, with 15 percent of the respondents indicating they will use CBDCs, while 8 percent said they will use cryptocurrencies and 5 percent chose stablecoins. Nineteen percent said that they have no preference and will be open to using all types of digital currencies.
Among consumers who preferred CBDCs, 72 percent perceived it to be more secure while 64 percent believed they are more stable as they would be backed by a government.
Fifty-three percent of those who chose cryptocurrencies said their main reason was a desire to avoid creating a taxable event when selling the coins for liquidity while 41 percent did so because they want to make transactions without the involvement of a central authority.
Meanwhile, another survey showed that over 70 percent of startups in the Greater Bay Area expect their income to grow by 25 percent or more over the next three years.
Among them, 18 percent of the respondents expect that their income will double.
The Hong Kong Trade Development Council and HSBC conducted the joint survey from August and September and interviewed 308 startups founded in 2016 or later, with their corporate headquarters or offices set up in the GBA.
The number of startups has reached a record high this year, up 68 percent from 2017, and there are 43 technology unicorns with a total market value of US$1.1 trillion (HK$8.58 trillion) in the Greater Bay Area alone, said Christina Ong, head of business banking, commercial banking, Hong Kong, at HSBC.
Separately, the Financial Services Development Council issued a report urging Hong Kong to seize the opportunities to develop the biotech industry, stressing the advantages in finance, academia that the SAR possesses.
