Digital currency

Despite all the talk of de-dollarisation and some movement towards it, the US dollar remains the dominant global currency for now, and it will be an uphill task to shift away from it. Lianhe Zaobao correspondent Lai Oi Lai speaks to academics and financial experts to find out more about the world's pursuit of de-dollarisation as a way of risk management.

Vietnamese academic Huy Pham analyses Vietnam’s growth as a crypto hub. While it is high on the rankings in terms of crypto adoption rate, much still needs to be done to create a stable regulatory framework if it is to take advantage of the vast potential it has in growing its cryptocurrency industry.

While Singapore and Hong Kong are hyped to be vying for cryptocurrency hub status, academic Ben Charoenwong notes that both cities have faced challenges navigating the tricky world of becoming a large cryptocurrency market while setting a regulatory framework. Due to China's unfavourable attitude towards cryptocurrency, activity may flow over to Hong Kong as it acts as the conduit for Chinese participants, but might this be a potential winner’s curse?

Technology expert Yin Ruizhi notes that while Bitcoin is a bold experiment in cryptocurrencies, in its current form it is still too unstable and resource-intensive to take the place of legal currencies as a mainstream global currency.

Calls for de-dollarisation have increased since the financial sanctions of the Ukraine war and the very real threat of the US dollar being weaponised. In this context, academic Pei Sai Fan explains why conditions are ripe for China and Asia to offer innovative alternatives, such as developing regional digital currency cooperation in the payment and settlement of regional trade and investment, and expediting the development of new cross-border digital payment infrastructure in Asia known as multi-CBDC platform projects.

Russia and China have a common interest in being less reliant on the dollar in the face of sanctions or anticipated sanctions. But are they moving at the same pace and will their efforts be significant enough to achieve self-reliance and precipitate a sea change in the global economic order?

The phrase “metaverse” has been bandied about but what exactly is it and how far along is the project? Academic James Pang and entrepreneur Liang Xinjun explain that the implications of this development are larger than most think. The metaverse is not so much a sub-world to enter into on the side but the integration of the real and virtual worlds and economic systems, essentially creating a new world with new governance structures and norms. US and Chinese firms are, of course, racing to get a big slice of the future.

The battle is heating up as Hong Kong and Singapore both vie for the wallets of rich Chinese in the tech sector. With the idea of family offices gaining popularity in recent years, will Hong Kong or Singapore have the edge over the other?

The non-fungible token (NFT) is a growing phenomenon in China, despite a cautious regulatory environment and official hostility to cryptocurrencies, which also use blockchain technology. But experts warn that as with every technology, particularly new ones, there is also a risk of misuse, such as in instances of fraud or compromised accounts.