Hong Kong’s digital banks are facing a crucial juncture. Despite their presence in the market, they only command a small share of the financial industry, holding a mere 0.3% of the total assets held by retail banks.

This indicates a significant opportunity for growth and expansion in the digital banking sector.

One of the significant obstacles that Hong Kong’s virtual banks encounter is the complexity of onboarding companies interested in diversifying into cryptocurrencies, non-fungible tokens (NFTs), and blockchain technology.

As reported by SCMP, a recent survey has underscored that 40% of these companies face significant challenges in the account opening process, with location-related constraints and stringent compliance standards being two of the most frequent hurdles mentioned.

Some businesses have been prompted to move to more hospitable regions due to these challenges. This trend could potentially impede digital innovation in Hong Kong.

On July 28th, Ng made an announcement regarding the collaborative plans with stakeholders to evaluate the potential advantages of integrating BTC into the financial reserves of the special administrative region.

In a detailed post, Ng underscored the significance of carefully considering the incorporation of BTC into strategic reserves as a means to enhance Hong Kong’s economic framework, provided that the appropriate regulatory conditions are in place.