Circle has signed a Memorandum of Understanding (MOU) with Hong Kong Telecom (HKT) to explore a blockchain-based loyalty program for Hong Kong merchants. The partnership aims to leverage Web3 technology to enhance customer engagement between merchants and consumers in Hong Kong.
Circle’s October 29 announcement highlights that this initiative will modernize business-customer interactions. Currently, the global loyalty market is valued at $5.57 billion, and loyalty programs influence around 70% of consumers’ buying choices.
The project will incorporate Circle’s Programmable Wallets to allow safer management of digital assets and smart contracts within consumer and business applications, simplifying the Web3 experience and boosting loyalty program effectiveness.
In addition to working with HKT, Circle has partnered with Thunes to enhance stablecoin liquidity management, supporting new ways of managing liquidity in the digital asset sector.
Since its launch of USDC in 2018, Circle has processed $17 trillion in transactions, although only 6.8% of the global population currently interacts with cryptocurrency. With a $34.69 billion market cap, USDC is positioned as a critical player in the digital currency ecosystem.
Hong Kong Considers Virtual Asset Tax Concessions and Expands Licensing for Crypto Exchanges:
Hong Kong is also exploring tax incentives for virtual assets, according to Christopher Hui, the Secretary for Financial Services and the Treasury, at Hong Kong Fintech Week on October 28.
Additionally, the city plans to issue more cryptocurrency exchange licenses by late 2024, following a five-month review by the Hong Kong Securities and Futures Commission (SFC). A list of approved platforms is expected soon, though since the licensing introduction in July, around 13 crypto exchanges or platforms have withdrawn or had their applications returned due to undisclosed reasons.
