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 includes a focus on artificial intelligence (AI) and improved governance and risk management. At Hong Kong Fintech Week, HKMA chief executive Eddie Yue announced Project Sage, an initiative to examine the use and governance of agentic finance - AI systems capable of performing tasks on behalf of users. The primary goal of Project Sage is to promote agentic finance applications while ensuring proper governance.

A cross-sector expert panel, comprising representatives from finance, payments, professional services, technology, and academia, will delve into use cases, sandbox testing, interoperability standards, and governance safeguards. Additionally, the HKMA has issued a discussion paper on banks' use of agentic AI, seeking input on governance models, responsibility arrangements, and a potential central register of trusted agents. The objective is to strike a balance between fostering innovation and managing risks.

The HKMA will also launch a post-quantum cryptography toolbox in collaboration with Hong Kong University of Science and Technology. This initiative aims to assist banks in preparing for the challenges posed by advances in quantum computing. Furthermore, the authority plans to introduce tokenised central bank money, enabling 24/7 settlement of interbank tokenised deposits.

This development would allow enterprises with global liquidity to make payments at any time and across multiple accounts, both domestically and internationally. Tokenised Exchange Fund Bills will also be piloted in the secondary market, and the HKMA is exploring the potential for regulated stablecoins to serve as a payment channel.

In emphasizing the importance of innovation, Yue stressed that it must be accompanied by robust governance and risk management to ensure broader benefits and more effective outcomes.