Hong Kong academic critiques crypto policies and China’s mining ban

Professor Yang Wang from the Hong Kong University of Science and Technology (HKUST) recently gave a talk at the HashKey New Horizons event. He had some pretty strong opinions about Hong Kong’s crypto policies and China’s mining ban.

Wang’s crypto journey started back in 2012. A former student of his introduced him to Bitcoin, but Wang thought it was a scam. When the same student pushed him again in 2014, he still wasn’t convinced.

It wasn’t until they approached Xiao Feng that he realized he had missed some big opportunities.  Wang believes Hong Kong should aim higher and lead the way in blockchain and crypto development.

Even with the US-China trade war going on, he thinks Bitcoin has an incredibly bright future. But he insists that the real win is in integrating digital assets with the real economy. 

“We can’t be satisfied with the current stage,” Wang said. He also pointed out that Hong Kong is struggling with a talent shortage, especially in professional sectors. Since 2022, the progress on Hong Kong’s crypto policies has been dragging. 

Wang wants to see things move faster. He also mentioned how government committees are often too large and inefficient. “A committee with nearly 50 members is almost useless,” he said.

He gave examples of Chinese companies like Huawei and Transsion using monetary data to buy commodities because of local currency devaluation.

He has been to places like Yiwu, where half the money for goods sold can only be recovered in local currencies that aren’t worth much. “The challenge is how to use these currencies.”

Related: Chinese mining pools control over 50% of Bitcoin hashrate despite ban

For Wang, the future is all about digitalization and integrating it with the real economy. He thinks this is important for the next generation’s economic growth.

Combining artificial intelligence with decentralized technology and regulation is also important. Even though this integration is tough, it’s necessary for progress.

Wang thinks China banning crypto mining was a big mistake. He pointed out that driving miners away just benefits other countries like the U.S., which gets a tax boost from the influx of miners.

“The U.S. media reported a $4 billion tax windfall from miners moving there,” he said. Instead of banning mining, he proposes that state-owned enterprises get involved to control risks while reaping benefits.