The government of Hong Kong should act to become a world leader in the blockchain, according to a report by the Financial Services Development Council.
The body, which was formed in 2013 with the specific remit to examine the sector, announced its findings in a report published this week, which included several immediate recommendations for government action in supporting the technology.
Among the proposals was a call for further preparation into digital currencies, with the RMB expected to be digitally issued in the near future.
This comes alongside recommendations for a new development hub for the technology, which would focus on private-public collaborations, in conjunction with efforts from the Hong Kong central bank.
The group also suggests the government should commit more of its own resources to the development of distributed ledger technology, encouraging a more hands-on approach that will place an increasing emphasis on new use cases for the blockchain.
Finally, the report suggested that a new lead function should be established, with the specific aims of encouraging public-sector development and uptake of blockchain solutions.
Through combining these actions, the advisory group suggests Hong Kong can become a global pioneer of the technology, which is thought to hold significant potential for a number of private industries and public functions.
Warning about the need for urgency, the report highlighted distributed ledger technology as one area where Hong Kong needs to fully commit, in order to gain an advantage amid the next major wave of tech development.
“Hong Kong needs to commit to DLT now in order to reserve a place for itself in a potentially very different world.”
The report comes at a promising time for the technology, with governments across the world now becoming increasingly supportive of blockchain development.
Central banks too have been keen to show their support for blockchain development, particularly as it relates to fintech and the potential applications in the financial sector.
Authorities in the U.K., Sweden, Russia, the U.S., Dubai, Singapore and South Korea are among those taking a proactive approach to supporting blockchain technology and its various uses across industry sectors.