Public Perception of Virtual Assets and Tokenized Money

37 Based on the findings from the three surveys conducted between April 2023 and November 2024, several trends have emerged. While preferences have shifted over time, such as an increased interest in Bitcoin over NFTs and a rise in alternative acquisition methods beyond online purchases, the overall awareness and understanding of virtual assets among the Hong Kong adult population have remained relatively stable. Despite a significant majority being aware of virtual assets, there is certainly room to enhance the understanding of the general public. This is crucial for increasing mainstream acceptance, preventing scams, and enabling investors to make informed decisions. The primary motivations for holding virtual assets continue to be investment prospects and returns, underscoring the necessity for a solid understanding to make informed choices. Given the high percentage of respondents who first held virtual assets in the past two to four years, it is likely that adoption will continue to grow. Although there has been a decline in recent months, suggesting a slowdown in the initial surge of new adopters, a steady stream of new entrants is expected. This growth could be driven by increasing awareness, enhanced regulation, and alternative channels to invest in virtual assets (e.g., ETFs), leading to a broader acceptance of virtual assets. As familiarity with virtual assets increases, the market may transition from early adopters to mainstream users. This shift could result in more stable growth rates and potentially greater regulatory oversight and institutional involvement. The regulatory landscape will be pivotal in shaping future adoption. The primary reasons for not holding virtual assets are found to be risks, lack of understanding, and regulatory issues, which can be addressed through investor education and a robust regulatory framework. Clear and supportive regulations could encourage more people to invest in virtual assets, while restrictive and ambiguous policies might hinder adoption. The findings also indicate a preference for regulatory clarity and security in the use of digital financial assets, as reflected by a significant portion of respondents supporting the idea that tokenized deposits should have the same legal status and protection as traditional bank deposits. Respondents’ feedback show that proper regulation significantly boosts confidence in using exchanges for virtual asset transactions, which highlights the importance of regulatory frameworks in fostering trust and encouraging the use of tokenized money. The current level of trust in intermediaries is relatively low, which indicates a potential barrier to the widespread adoption of virtual asset transactions through these platforms. While a notable percentage of respondents indicated willingness to use tokenized deposits for trading virtual assets, there is also a significant portion that is either neutral or opposed. This suggests that while there is interest, there are also reservations that need to be addressed.