Despite challenges in the current DeFi and metaverse landscape, the reports highlight potential growth and innovation in these emerging sectors.
Government-backed studies in Hong Kong have identified decentralized finance (DeFi) and metaverse technologies as new opportunities to enhance the region's dominance in the global fintech landscape.
The Hong Kong Institute for Monetary and Financial Research (HKIMR), the research arm of the Hong Kong Academy of Finance (AoF), released two reports on June 25, each detailing the implications of DeFi and metaverse on the finance sector.
Hong Kong’s report on DeFi highlighted the ecosystem’s explosive growth from a modest $6 billion market capitalization in 2021 to over $80 billion in 2023. It added:
