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 aims to boost technology initiatives alongside a focus on governance and risk management. At Hong Kong Fintech Week, HKMA chief executive Eddie Yue announced the launch of Project Sage, which will investigate the use and governance of agentic finance – artificial intelligence systems capable of performing tasks on behalf of users.

The primary goal of Project Sage is to both promote application and ensure proper governance, according to Yue. A cross-sector expert panel, comprising representatives from finance, payments, professional services, technology, and academia, will explore various use cases, sandbox testing, interoperability standards, and governance safeguards.

In addition, the HKMA has released a discussion paper on banks' utilization of agentic AI, inviting input on governance models, responsibility arrangements, and the possibility of establishing a central register of trusted agents. The objective is to establish rules that foster innovation while managing risks. Furthermore, the authority plans to introduce a post-quantum cryptography toolbox, developed in collaboration with the Hong Kong University of Science and Technology, to assist banks in adapting to the challenges posed by advancements in quantum computing.

Regarding tokenisation, Yue revealed that the HKMA will introduce tokenised central bank money to facilitate 24/7 settlement of interbank tokenised deposits. This development will enable enterprises with extensive global liquidity to conduct round-the-clock transfers across different accounts and even across borders. Similarly, retail investors will gain greater flexibility in investing in various tokenised financial products on a 24/7 basis, enhancing asset allocation flexibility and security.

Yue also hinted at the potential introduction of regulated stablecoins as a payment channel and the exploration of piloting tokenised Exchange Fund Bills in the secondary market.