Virtual currency entrepreneurs fight for future of bitcoin in Hong Kong
With its appetite for entrepreneurship, cryptocurrency experts argue, Hong Kong is uniquely placed to exploit disruptive financial technologies
When 16-year-old Casper Cheng Tsz-chun of the New Territories started creating, or "mining" for, bitcoins two years ago using his father's computer, he never imagined that the value of the digital currency would reach a high of US$1,242 a piece.
Nor did he foresee that governments the world over would debate the risks and merits of the digital currency that operates free from government regulation .
Cheng is one of a growing number of bitcoin enthusiasts and entrepreneurs who believe that Hong Kong can become the bitcoin capital of the world - despite recent setbacks including restrictions on bitcoin trading imposed by Beijing.
Cheng feels so strongly about the potential for the digital currency that in December he wrote to Financial Secretary John Tsang Chun-wah on behalf of the Hong Kong bitcoin community, asking the government to clarify bitcoin's status in the city to encourage more bitcoin investment. Tsang's office acknowledged Cheng's letter, but has not responded formally.
Hong Kong can become the centre of the bitcoin universe
"I think Hong Kong can set an example for keeping bitcoin clean and encouraging bitcoin businesses," Cheng says. "I urged Tsang to set regulations to deter money laundering with bitcoins and to clarify the government's stance on digital currencies so that bitcoin entrepreneurs won't need to operate in a grey area and can bring investments to the city."
Bitcoin has boomed as an alternative banking and payment system, attracting the attention of the financial community and governments globally as users lobby for the currency to gain legitimacy. The total value of all bitcoins in the world is currently more than US$7.7 billion.