Bitcoin continues to solidify its position as a viable alternative asset, according to Hong Kong’s Securities and Futures Commission chief, Julia Leung.

Bitcoin, the largest cryptocurrency by market capitalization, has demonstrated its resilience over the past 15 years, surviving multiple cycles of “boom and bust,” noted Julia Leung at the Greenwich Economic Forum. Despite skepticism from central bankers and economists about the intrinsic value of cryptocurrencies, Leung emphasized Bitcoin’s enduring presence.

“Over the past 15 years, Bitcoin has survived multiple cycles of boom and bust, clearly showing its staying power as an alternative asset,” said Leung.

Leung’s support, however, leans more towards Bitcoin’s underlying technology—distributed ledger technology (DLT)—rather than the cryptocurrency itself. She highlighted the potential benefits of DLT, stating, “The potential benefits of DLT are plain to see. It has the potential to enhance efficiency and lower costs in the distribution, clearing, settlement, and custody of real-world assets.”

Addressing the hype around non-fungible tokens (NFTs), Leung remarked that while digital collectibles “may be a fad,” the enabling technology is increasingly being applied to real-world assets. According to Leung, tokenization could lead to “wider financial inclusion, fractionalization, custody, and ownership, all on-chain.”

Despite the promising outlook, Leung acknowledged that significant advancements are required for these benefits to be fully realized in the financial sector. She stressed the need for blockchain networks to scale up and mature, highlighting the importance of interoperability across distributed networks among financial institutions and across borders.

Hong Kong’s positive stance towards cryptocurrencies is evident as the region aims to establish itself as a crypto-friendly hub. This is underscored by the recent approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs). However, authorities are also taking stringent measures against unlicensed crypto exchanges, threatening to shut down all unlicensed operations in the region.

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