HKMA eyes next level for Fintech 2030 with AI push

The Hong Kong Monetary Authority (HKMA) has unveiled the next phase of its Fintech 2030 strategy, which emphasizes advancing technology alongside governance and risk management. At Hong Kong Fintech Week, HKMA chief executive Eddie Yue introduced Project Sage, aimed at examining and governing agentic finance – artificial intelligence systems capable of performing tasks on users' behalf.

The primary goal of Sage is to promote application while ensuring robust governance. A cross-sector expert panel will delve into use cases, sandbox testing, interoperability standards, and governance safeguards involving finance, payments, professional services, technology, and academic representatives. Additionally, the HKMA released a discussion paper on banks adopting agentic AI, soliciting feedback on governance models, responsibility arrangements, and a potential central register of trusted agents.

The authority plans to launch a post-quantum cryptography toolbox in collaboration with Hong Kong University of Science and Technology to assist banks in preparing for quantum computing challenges. Tokenisation is another key focus, with the HKMA introducing tokenised central bank money for 24/7 interbank deposit settlement and expanding the number of participating banks for cross-lender transfers around the clock.

This will enable enterprises with global liquidity to make payments at any time and anywhere, as well as provide retail investors with more flexible and secure asset allocation opportunities. The HKMA also intends to pilot tokenised Exchange Fund Bills in the secondary market and explore the use of regulated stablecoins as a payment channel.

Yue stressed that innovation must be accompanied by robust governance and risk management for sustainable growth and broader benefits.