Hong Kong is taking steps to foster the development of Web3, the next generation of the internet that is powered by blockchain and decentralized technologies. The government has announced the formation of a task force that will explore the opportunities and challenges of Web3, as well as provide policy recommendations and support for the local ecosystem.

The task force, which will be led by the Secretary for Innovation and Technology, will consist of representatives from various government departments, regulators, industry associations, academia and experts. The task force will also engage with stakeholders from different sectors, such as finance, commerce, social welfare and education, to understand their needs and expectations for Web3.

The government hopes that by embracing Web3, Hong Kong can enhance its competitiveness and innovation in the digital economy, as well as create more value and benefits for its citizens and businesses. Web3 is seen as a paradigm shift that will enable more user-centric, transparent, secure and interoperable online services and applications.

Some of the potential use cases of Web3 that the government is interested in include digital identity, data sovereignty, decentralized finance (DeFi), non-fungible tokens (NFTs), metaverse and social media. The government also recognizes the need to address the regulatory and technical challenges of Web3, such as data privacy, cybersecurity, scalability and interoperability.

The task force is expected to submit its report and recommendations to the Chief Executive by the end of 2024. The government will then consider the report and formulate its strategy and action plan for Web3 development in Hong Kong