COMP7412A - Banking in Web 3.0 - Metaverse, DeFi, NFTs and beyond

Semester 1, 2023-24

Professor
Juergen H. Rahmel
Teaching assistant
Anthony Lam
Syllabus The course introduces students to new concepts of Banking with Web3.0 Technologies. Firstly, it will review the evolution from traditional banking towards decentralized finance and token economies. It will then assess the opportunities for new customer experiences with virtual reality and in the Metaverse as well as examine the opportunities and risks of NFTs (non-fungible tokens). The course will thoroughly examine the different types of Digital Assets, Digital Currencies and special forms like Central Bank Digital Currencies (e-CNY, e-HKD). A critical factor in the evolution towards Web3-Finance are the required regulations, a proper risk management and compliance of products and processes. The course will elaborate on these with the help of case studies and contemporary scenarios at the time of the lecture.
Introduction by Professor Objectives of this course are:
- To teach students new elements of financial technology as they emerge in the owner-centric ecosystems like Metaverse, NFTs and decentralized finance
- To enable them to structure their future research and learning about such emerging financial models
- To help them understand how to safeguard new finance concepts against fraud, misuse and criminal activities
- To foster an understanding of how to tailor emerging financial concepts for financial inclusion and the betterment of society
Learning Outcomes
Course Learning Outcomes Relevant Programme Learning Outcome
CLO1. Able to analyze, compare and contrast elements of traditional finance with new concepts of decentralized finance and digital assets PLO. 5, 6, 7, 9
CLO2. Able to apply their newly learned knowledge to emerging concepts like Banking in Metaverse or the role of NFTs in Finance PLO. 4, 8, 9, 14
CLO3. Able to research, compile and analyze external/regulatory requirements for risk assessment and compliance in the decentralized finance world PLO. 8, 10, 13
CLO4. Able to work out, discuss and communicate new ideas and concepts in Web3.0 contexts PLO. 9, 11, 12
CLO5. Able to effectively use newly acquired skills for any evolving finance technology in the future PLO. 8, 10, 12, 14
View Programme Learning Outcomes
Pre-requisites Nil
Compatibility Students who have obtained credits for COMP7808 in the academic year 2022-23 are not allowed to take COMP7412.
Topics covered
Course Content No. of Hours Course Learning Outcomes
1. Elements of traditional finance (Customer demand, products, technologies) 3 CLO1
2. Regulatory requirements, Risk management in Banking 3 CLO3
3. Introduction to Digital Assets (all types) 3 CLO1, CLO2
4. Tokenisation of Assets, pro and con of tokenization economies 3 CLO1, CLO4
5. CryptoCurrencies (from Bitcoin to Central Bank Digital Currencies and e-HKD) 3 CLO1, CLO4
6. Decentralized Finance (DeFi) – opportunities and risks 3 CLO3
7. Concept, technology and use of NFTs as ownership certificate and soul tokens 3 CLO1, CLO2
8. Developments in Virtual Reality and Metaverse, Concepts of banking in Metaverse 3 CLO4, CLO5
9. Regulation revisited – what more is needed to safeguard Banking in Metaverse, with NFTs, in DeFi economies? 3 CLO5
10. Review and critical analysis of specific cases studies in DeFi and Metaverse banking (to be defined at time of lecture, based on very current industry developments) 3 CLO1, CLO5
 
Assessment
Description Type Weighting * Tentative Assessment Period /
Examination Period ^
Course Learning Outcomes
Essay, case study Continuous Assessment 50% - CLO1, CLO2, CLO3, CLO4, CLO5
Written exam covering all course contents Written Examination 50% 8 - 23 Dec 2023 CLO1, CLO2, CLO3, CLO4, CLO5
* The weighting of coursework and examination marks is subject to approval
^ The exact examination date uses to be released when all enrolments are confirmed after add/drop period by the Examinations Office.  Students are obliged to follow the examination schedule.  Students should NOT enrol in the course if they are not certain that they will be in Hong Kong during the examination period.  Absent from examination may result in failure in the course. There is no supplementary examination for all MSc curriculums in the Faculty of Engineering.
Course materials Prescribed textbook: N/A
Session dates
Date Time Venue Remark
Session 1 3 Sep 2023 (Sun) 10:00am - 1:00pm CYP-P4  
Session 2 6 Sep 2023 (Wed) 7:00pm - 10:00pm CYP-P4  
Session 3 10 Sep 2023 (Sun) 10:00am - 1:00pm CYP-P4  
Session 4 13 Sep 2023 (Wed) 7:00pm - 10:00pm CYP-P4  
Session 5 17 Sep 2023 (Sun) 10:00am - 1:00pm CYP-P4  
Session 6 20 Sep 2023 (Wed) 7:00pm - 10:00pm CYP-P4  
Session 7 24 Sep 2023 (Sun) 10:00am - 1:00pm CYP-P4  
Session 8 27 Sep 2023 (Wed) 7:00pm - 10:00pm CYP-P4  
Session 9 8 Oct 2023 (Sun) 10:00am - 1:00pm CYP-P4  
Session 10 15 Oct 2023 (Sun) 10:00am - 1:00pm CYP-P4  
CYP - Chong Yuet Ming Building
Add/drop 1 September, 2023 - 16 September, 2023
Maximum class size 150
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