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Blockchain Unleashed at the United Nations General Assembly on the Global Crisis

Greta Thunberg, the 16-year-old has been on the headlines for the global climate crisis movement and has delivered a compelling speech at the 73rd United Nations General Assembly (UNGA) on how businesses and political involvement have stolen her dreams by the lack of response to the crisis.

The burning platform created by Thunberg and the Global Climate Strike, involving around 1.4 million children protesting and thereby staying away from school for the development in blockchain and sustainable development goals (SDGs).

Dr. Jane Thomason, the CEO of Fintech Worldwide, suggested:

“An increasing number of blockchain events at and around the UNGA this year focused on demonstrating how blockchain is continuing to contribute to the SDGs by offering up some excellent use cases.”

“A report by the Sustainable Digital Finance Alliance (SDFA) and HSBC Center of Sustainable Finance launched the report, “Blockchain Gateway for Sustainability Linked Bonds: Widening access to finance block by block,” suggested that blockchain can enable the green bond market to scale dramatically from 2 percent of the current trillion dollar market and could potentially unlock capital solutions.”

Katherine Foster, the Chief Intelligence Officer of the SDFA mentioned:

“With 130 banks representing more than $47 trillion in assets and one-third of the global industry signing the United Nations’ Principles for Responsible Banking on Sunday, the role of green digital finance will be central to meet the goals of the U.N.’s Paris Agreement on Climate Change, as well as its Sustainable Development Goals.”

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China and Singapore establish task force for green finance cooperation

China and Singapore have joined forces to establish a task force aimed at deepening bilateral cooperation in green and transition finance. The Monetary Authority of Singapore (MAS) announced the collaboration with the People’s Bank of China (PBC) in creating the China-Singapore Green Finance Taskforce (GFTF). The two major Asian economies seek to develop a set of financial standards, products, technologies, and definitions to support a low-carbon future in the region.

The GFTF will facilitate greater public-private sector collaboration and create concrete initiatives to catalyze capital flows to support a credible and inclusive transition to a low carbon future for both countries and the region. Public-private participants from China and Singapore will work together to co-develop the necessary initiatives. According to Gillian Tan, the assistant managing director and chief sustainability officer of MAS, this collaboration is vital in ensuring that both countries’ financial sectors remain sustainable in the long term.

Initially, the GFTF will focus on finding common ground for taxonomies and definitions regarding each other’s existing transition activities. The task force will also strengthen sustainability bond market connectivity, which includes two-way access to green and transition bond products. MAS and PBC will collaborate on this initiative to ensure that sustainable finance adoption is more widely accepted and accessible to all stakeholders in the region.

The GFTF’s technology initiative will involve MetaVerse Green Exchange, a licensed crypto exchange from Singapore, and Beijing Green Exchange, a Beijing municipal government-approved company. The two companies will help facilitate sustainable finance adoption and pilot digital green bonds with carbon credits. This initiative aims to promote sustainable finance adoption by providing more accessible and user-friendly digital platforms for investors and other stakeholders.

Chinese banks are reportedly opening bank accounts for regulated crypto companies, with several acting as a payment layer for the crypto platforms. The state-owned Bank of Communications is in talks to open accounts for regulated companies. Additionally, Hong Kong’s largest virtual bank, ZA Bank, will act as the settlement bank for crypto companies, according to a report by the Wall Street Journal. This initiative aims to provide more opportunities for crypto companies to access the necessary funding for their operations while ensuring that the financial system remains safe and stable.

In conclusion, the China-Singapore Green Finance Taskforce (GFTF) is a significant step towards greater collaboration in green and transition finance initiatives in the region. The task force’s focus on developing financial standards, products, technologies, and definitions will enable the region to make significant strides towards a low-carbon future. The involvement of public and private participants from China and Singapore is vital in ensuring that the region’s financial sector remains sustainable in the long term. Additionally, the GFTF’s technology initiative involving MetaVerse Green Exchange and Beijing Green Exchange aims to promote sustainable finance adoption by providing more accessible and user-friendly digital platforms for investors and other stakeholders.

Hong Kong Aims to Lead in Green Finance and Web 3.0, Says Financial Secretary

Hong Kong is setting its sights on becoming a global leader in two new fields: green finance and Web 3.0, according to a recent speech by the city’s Financial Secretary Paul Chan. The speech outlined Hong Kong’s strategic plans for economic development, with a special emphasis on these two innovative sectors.

Chan highlighted Hong Kong’s dedication to green finance, a commitment that mirrors the worldwide trend towards sustainable and eco-friendly practices in finance. Last year, Hong Kong’s green finance initiatives reached a staggering 80 billion US dollars, making up one-third of Asia’s total bond issuance. The city is also leading the way in setting market standards for green bonds, with the launch of 30-year US dollar green bonds and 20-year Euro bonds.

In a groundbreaking move, Hong Kong has started issuing green bonds using tokenization, showcasing its commitment to financial innovation.

Alongside green finance, Hong Kong is also setting its sights on Web 3.0, with a special focus on virtual assets. Drawing from experiences around the globe, the city began issuing licenses for these assets on June 1st. The Hong Kong Securities and Futures Commission is tasked with enforcing effective regulation and fostering sustainable growth in this sector.

The Financial Secretary also highlighted in his speech that as a financial center, the market value of Hong Kong’s stock market is 4.6 trillion US dollars, and the scale of asset management and wealth management businesses is also 4.6 trillion US dollars.

Hong Kong's Financial Secretary Propels Web3 Expansion

The fusion of reality and virtual experiences is not only adding a new dimension to our leisure activities but is also unlocking significant economic value. This evolution is primarily driven by innovative technologies, with digital entertainment emerging as a potent economic sector, shared by Hong Kong’s Financial Secretary CHAN Mo-po, Paul.

According to research, the global online entertainment market revenue is projected to soar from USD 184.2 billion in 2021 to an impressive USD 653.4 billion by 2027. This represents a compound annual growth rate of 21%, highlighting the vast potential and expansive growth space in the industry.

Last Friday, the “Digital Entertainment Leadership Forum” was inaugurated, emphasizing the theme “Entertainment Power UP! Web3 New Vision.” The event witnessed participation from over 90 speakers from more than 30 countries and regions. They delved into how digital entertainment technologies in the Web3 era are revolutionizing various sectors, including art, education, sports, and daily life.

Over the last ten years, streaming music, movies, social platforms, and mobile games have grown at an incredible rate because to the quick spread of mobile internet and smartphone technology. The third-generation internet (Web3) and blockchain technology are projected to be the two main drivers of the next wave of breakthrough development. NFTs, GameFi, Play to Earn, and “immersive entertainment” are areas where global entertainment giants are heavily investing resources.

Cyberport, a digital community in Hong Kong, recently hosted a three-day annual event, emphasizing the power of Web3 in the entertainment sector. The event showcased how local enterprises are leveraging Web3 technology in various life and business segments, enhancing efficiency and creating new economic value. For instance, a local startup collaborated with Marvel Entertainment to launch the world’s first immersive interaction fitness adventure application, allowing users to exercise alongside comic characters.

The rapid development of Web3 is not confined to digital entertainment or virtual assets. The core blockchain technology of Web3, characterized by its decentralization, security, transparency, immutability, and cost-effectiveness, finds applications in finance, business, trade, supply chain management, and daily life.

The Hong Kong Special Administrative Region government is also actively adopting Web3 technologies.

To accelerate Web3 development, a budget of HKD 50 million was allocated to Cyberport this year to foster a thriving Web3 ecosystem. This includes attracting businesses and talent and organizing related educational and promotional events. Currently, Cyberport has amassed over 180 Web3-related technology companies, including unicorns and licensed virtual asset trading platforms, with over 20% of these enterprises originating from mainland China and overseas.

Financial Secretary Paul Chan recently emphasized the city’s dual focus on green finance and Web3.0. Last year, Hong Kong’s green finance initiatives reached a staggering USD 80 billion, accounting for one-third of Asia’s total bond issuance. In a groundbreaking move, the city began tokenizing green bonds, underscoring its commitment to financial innovation. Furthermore, licenses for virtual assets were issued starting June 1st, with the Hong Kong Securities and Futures Commission overseeing regulation and sustainable growth in this sector.

Chief Executive Li Ka-chung also highlighted Hong Kong’s potential in Web3.0 during the “Convergence of Finance, Innovating the Future” seminar. The city’s commitment to Web3.0 was further solidified with the launch of the “Task Force on Promoting Web3 Development” on June 30th, 2023. Led by Paul Chan, the task force aims to promote the sustainable and responsible development of Web3 in Hong Kong. This initiative, combined with the establishment of the Hong Kong Web 3.0 Association and the release of a report on Web 3.0 technologies, showcases Hong Kong’s proactive approach to embracing the Web3 era.

BIS Advances Technology in Finance: Quantum, AI, and Green Initiatives for 2024

The Bank for International Settlements (BIS) has announced a suite of six pioneering projects for 2024, signaling a significant leap in the integration of emerging financial technologies such as quantum security, artificial intelligence, and green finance. This move demonstrates BIS’s dedication to enhancing the resilience and efficiency of the global financial system in an increasingly digital and environmentally-conscious era.

The six projects, as outlined by the BIS Innovation Hub, are as follows:

Project Leap (Eurosystem Centre): Focused on “quantum-proofing” payment systems, this initiative seeks to protect financial infrastructures against the potential threats posed by quantum computing advancements. The Eurosystem Centre leads this endeavor, highlighting the importance of future-proofing payment systems in the digital age.
Project Symbiosis (Hong Kong Centre): Leveraging artificial intelligence and big data, this project aims to revolutionize emissions tracking in supply chains, particularly focusing on Scope 3 emissions. The initiative underscores the critical role of technology in tackling climate change and promoting sustainable business practices.
Project Aurum (Hong Kong Centre): This project delves into the privacy aspects of retail central bank digital currencies (CBDCs). Collaborating with academic and privacy experts, it reflects the BIS’s commitment to balancing innovation in digital currencies with the need for user privacy.
Project NGFS Data Directory 2.0 (Singapore Centre): Aimed at enhancing the accessibility and usability of climate-related financial data, this project supports the Network for Greening the Financial System (NGFS). It addresses the growing importance of climate risk in financial decision-making.
Project Promissa: Exploring the use of distributed ledger technology, this project tests the tokenization of promissory notes, a critical component in funding international financial institutions. It highlights the potential of blockchain technology in improving the efficiency and security of financial transactions.
Project Hertha (London Centre): This initiative applies network analytics to identify patterns of financial crime in real-time payment systems, showcasing BIS’s dedication to combating financial crime and enhancing the integrity of the financial ecosystem.

Cecilia Skingsley, Head of the BIS Innovation Hub, emphasized the importance of these projects, stating that they reflect a commitment to safety and efficiency in financial services, in line with the principles set by G20 countries. The projects build on the completion of 12 initiatives in 2023, with eight more ongoing, showcasing BIS’s proactive approach in addressing the challenges of the modern financial landscape.

These projects also align with BIS’s broader efforts in critiquing cryptocurrencies, advocating for transparency reforms, and monitoring complex securities, further cementing its role in promoting stability and soundness in the global financial system.

As the financial world grapples with the implications of digital transformation and environmental challenges, the BIS’s 2024 agenda stands as a testament to its role as a leader in shaping policies and infrastructure for a sustainable and secure financial future.