Public Perception of Virtual Assets and Tokenized Money

5 Virtual assets and tokenized money are closely related concepts within the broader digital finance landscape. A virtual asset (VA) is a digital representation of an asset that can be traded and transferred. Examples of VAs include cryptocurrencies, such as Bitcoin and Ether, and non- fungible tokens (NFTs), which are unique VAs that often represent digital artwork or other digital or real property. Tokenized money represents a specific class of virtual assets, focusing on the digital representation of fiat currencies or valued commodities which provide a storage of value as well as a medium of exchange. Examples of tokenized money include retail and wholesale Central Bank Digital Currencies (CBDCs) issued by central banks and stablecoins which are digital assets designed to maintain a stable price over time such as Tether (USDT) and USDC. Both VAs and tokenized money leverage blockchain technology to enhance efficiency, security, and accessibility in financial transactions. Governments and financial regulators are developing frameworks to ensure these digital assets comply with existing financial laws and protect investor interest. For example, Hong Kong’s regulatory framework for VAs includes provisions for tokenized money, ensuring adherence to anti-money laundering and counter-terrorist financing regulations. Hong Kong has a clear vision to establish itself as a leading international financial center for VA activities. In collaboration with financial regulators, the Hong Kong government has been implementing necessary safeguards to mitigate risks and facilitate VA innovations in a secure and regulated environment. To bolster its position as a hub for virtual assets, Hong Kong has been exploring several pilot projects that leverage the technological benefits of VAs. These projects include the issuance of tokenized green bonds, development of e-HKD, and Project Ensemble. Regulators also have plans to develop regulatory frameworks for stablecoins, tokenized deposits and other forms of tokenized money. From April to October 2023, we conducted a two-phase survey to understand the attitudes of the Hong Kong population towards virtual assets. In view of Hong Kong’s continuous efforts to create a conducive environment for the sustainable growth of the VA sector, we conducted another survey in November 2024 to understand the public perception of both virtual assets and tokenized money. This report documents the latest findings, which we hope can provide insights to support policymakers, regulators, and the finance professionals in making informed decisions that align with public needs and preferences. INTRODUCTION