Hong Kong Monetary Authority: Digital Currency and Data Infrastructure jointly build the core pillar of Hong Kong's future financial system.

On October 30th, Eddie Yue, the Chief Executive of the Hong Kong Monetary Authority (HKMA), stated that the HKMA's "Fintech 2025" work includes promoting banks to adopt financial technology and nurturing fintech talent and businesses. In order for Hong Kong's digital economy to thrive, in addition to the mentioned "software infrastructure," robust financial "hardware infrastructure" is equally crucial. The HKMA is strengthening the financial "transport network" through the "Fintech 2025" initiative. Eddie Yue specifically shared two key focuses: exploring central bank digital currencies (CBDC) and constructing new-generation data infrastructure. These initiatives complement each other and together build the core pillars of Hong Kong's future financial system. Eddie Yue pointed out that financial infrastructure is like a highway that allows funds and financial assets to flow securely and efficiently through the economy, while the "digital bridge" connects different parts of the financial system to prevent the formation of isolated "data islands" that weaken efficiency and hinder innovation. Therefore, robust financial infrastructure is crucial for establishing a safe, efficient, and inclusive financial system in Hong Kong. Reshaping the currency of the digital era Hong Kong already has an advanced payment system and is the only financial center globally with a real-time gross settlement system (RTGS) that supports four currencies. The introduction of "Faster Payment System" (FPS) in 2018 further facilitated retail payments and made them more seamless and convenient. FPS has now become part of citizens' daily lives, enabling real-time transfers between banks and e-wallets. In recent years, FPS has been interconnected with similar systems in Thailand and Mainland China, providing more pathways for cross-border payments. Building upon this strong foundation, the HKMA started researching a new type of digital currency based on Distributed Ledger Technology (DLT) the Central Bank Digital Currency (CBDC), known as the "Digital Hong Kong Dollar." Through the "Fintech 2025" initiative, these efforts have been accelerated, moving from experimentation to practical implementation. The "Digital Hong Kong Dollar" is issued by the HKMA and carries no credit risk. Therefore, the initial focus is on exploring its application at the wholesale level, especially for international trade payments. The mBridge project is linking the "Digital Hong Kong Dollar" with CBDCs from Mainland China, Thailand, and the UAE to reduce cross-border transaction processing time from days to seconds. As the project reaches the Minimum Viable Product (MVP) stage in 2024, this new financial "highway" significantly improves the efficiency of cross-border payments for businesses. Exploration of DLT has led Hong Kong to further study how tokenization can enhance its financial system. The Ensemble project launched last year aims to promote the development of a tokenization ecosystem in Hong Kong. Since its inception, the project has garnered widespread attention locally and internationally. Collaboration with central banks from Brazil, France, and Thailand has been initiated to research cross-border tokenization use cases. The joint exploration of 20 tokenization applications in sandbox experiments with the industry aims to facilitate faster fund mobilization for businesses and more efficient liquidity management, thereby reducing costs and providing a smoother financial service experience for businesses and the public. Hong Kong is also exploring the possibility of allowing citizens to use the "Digital Hong Kong Dollar" at the retail level. The recently completed Pilot Scheme for the "Digital Hong Kong Dollar" gathered valuable industry experience. Based on this, Hong Kong plans to complete the necessary policy, legal, and technical preparations in the first half of next year to be well-prepared for potentially expanding the use of the "Digital Hong Kong Dollar" to retail applications. These efforts around the "Digital Hong Kong Dollar" and tokenization are part of a grand vision: establishing a comprehensive digital currency framework that promotes the coexistence of the "Digital Hong Kong Dollar," tokenized deposits, and regulated stablecoins to support financial innovation in the industry and foster a vibrant and innovative digital currency ecosystem in Hong Kong. Building bridges to link data islands Another important pillar of the "Fintech 2025" strategy is the development of a new-generation data infrastructure to construct secure and interconnected "bridges" that facilitate the flow of data among islands with the consent of data owners. This is the focus of the Commercial Data Interchange (CDI). Since its launch in 2022, the CDI has become a secure "bridge" connecting banks and multiple data providers. In just three years, the CDI has established strong partnerships with 26 banks and 17 data providers, covering data from initial payment records, e-commerce transactions, and import/export declarations to government data. As of September 2025, the CDI has facilitated over 71,000 loan applications and reviews, estimated to involve a total credit approval amount exceeding HK$581 billion. From cookie shops, dessert shops to pet supply stores and frozen food importers, many small and medium enterprises have successfully overcome challenges in applying for bank loans with the help of CDI. The "digital bridge" also benefits individuals and large enterprises. With the implementation of an Application Programming Interface (API) framework and Interconnected Account Data Service (IADS) in Hong Kong, customers can securely share data among different banks and platforms with authorization, experiencing faster and more convenient financial services. Currently, Hong Kong has launched over 1,200 APIs, with an average monthly usage of over 96 million times; the IADS service, adopted by 15 banks, has attracted over 70,000 users and processes over 10 million cross-bank data transfers per month. Lastly, achieving interoperability between the government, banks, and cross-border partners simplifies the verification process of official records, making financial services more streamlined. The CDI is now connected to the most trusted data sources such as the Companies Registry and Land Registry, automatically processing over 1.5 million searches per month. The CDI's interoperability has expanded to the Deep/HK Cross-border Data Validation Platform, providing banks with reliable channels to verify the information of cross-border borrowers and businesses. These measures reduce paperwork, shorten delays, and enhance the level of financial services within the ecosystem. Looking back at "Fintech 2025," the financial "highway" and "digital bridge" constructed by Hong Kong have already brought tangible benefits faster and more cost-effective payment methods, smoother financing, and robust data infrastructure connecting banks, businesses, and the government. These achievements have also gained recognition from the international community. In a recent major international financial center ranking, Hong Kong ranked first in the fintech category, reflecting its leading role in financial infrastructure and its contribution to developing new areas in the financial market, further solidifying Hong Kong's position as a leading fintech hub and international financial center. Eddie Yue stated that although "Fintech 2025" is nearing its conclusion and has laid a solid foundation for Hong Kong's digital finance future, the journey does not stop here. As the 10th Hong Kong Fintech Week approaches, the HKMA will unveil Hong Kong's next phase of fintech development blueprint to ensure Hong Kong continues to lead in fintech innovation.