Hong Kong Monetary Authority's "Fintech 2025" Strategy: Digital Hong Kong Dollar, Blockchain Credit Data, Sandbox Review

During the fintech seminar, HKMA Chief Executive Eddie Yue outlined the "Fintech 2025" strategy, which includes initiatives related to digital currency and blockchain technology, such as the introduction of a digital Hong Kong dollar and a blockchain-based credit data platform. The feasibility of a financial sandbox will also be reviewed.

Deepening Research on Central Bank Digital Currencies: e-HKD, e-CNY

The Hong Kong Monetary Authority (HKMA) stated that they will conduct in-depth research on both wholesale and retail central bank digital currencies (CBDC), exploring use cases, benefits, and associated risks of a retail Hong Kong dollar digital currency, e-HKD. In addition, HKMA will collaborate with the People's Bank of China to pave the way for digital yuan in Hong Kong, providing cross-border payment services. Note: The HKMA refers to the digital yuan as e-CNY instead of DC/EP.

Utilizing Blockchain as a Data Sharing Infrastructure

The Hong Kong Monetary Authority stated: "To fully unleash the potential of the new generation of Hong Kong banks, the HKMA will first enhance Hong Kong's existing data infrastructure and establish new infrastructure, including the 'Commercial Data Interchange,' the enterprise version of 'Intelligent Convenience,' and the 'Blockchain Shared Credit Data Platform,' to facilitate data sharing with the consent of data owners."

Reviewing the Feasibility of Financial Sandbox

The Hong Kong Monetary Authority also mentioned that they will enhance the "Fintech Supervisory Sandbox" and explore the feasibility of providing funding for eligible fintech projects, discussing this with the Innovation and Technology Bureau.