Hong Kong FinTech Week 2023

In view of the conclusion of the latest FinTech Week in Hong Kong on November 2, 2023, the Hong Kong Monetary Authority (HKMA) has published a press statement to inform of several initiatives that were announced during the event which are aimed at strengthening Hong Kong’s FinTech capabilities. The key initiatives are briefly described below, for all of them, please refer to the enclosed statement.
FPS x PromptPay QR Payment: The HKMA is partnering with the Bank of Thailand to introduce „FPS x PromptPay QR Payment“, a payment service, which allows users to make mobile payments at over 8 million PromptPay merchants in Thailand and facilitating payments for Thai visitors at around 50,000 FPS merchants in Hong Kong.
Tokenization in the bond market: Following the successful issuance of the world’s first tokenized government green bond, the HKMA is exploring further applications of distributed ledger technology (DLT) in capital markets, including a second tokenized government green bond.
e-HKD Pilot Programme: The HKMA completed Phase 1 of the e-HKD Pilot Programme, with Phase 2 set to commence in the coming year. The second phase will focus on new use cases for the e-HKD and on extending existing use cases from Phase 1.
FinTech in banks: The HKMA continues to promote FinTech integration in the banking sector. Building on the findings of the previous Tech Baseline Assessment, the HKMA is proactively driving the adoption of FinTech solutions among all banks. In August 2023, the HKMA introduced a comprehensive FinTech Promotion Roadmap outlining initiatives for the next 12 months, with a focus on advancing Wealthtech, Insurtech, Greentech, Artificial Intelligence, and Distributed Ledger Technology (DLT).
Using SupTech: The HKMA is further exploring the use of SupTech (Supervisory Technology) to enhance the efficiency and forward-looking capabilities of its supervisory processes through the adoption of cutting-edge technologies. This includes the launch of an end-to-end digital supervisory platform and a Robotic Process Automation solution. Furthermore, the HKMA has implemented three specific initiatives under its AML (Anti-Money Laundering) SupTech strategy: Macro Analytics, a platform for submitting financial crime risk data, and a horizon scanning tool. These measures are designed to protect the integrity of the banking system and reduce the risks associated with financial crimes.
Wholesale CBDC: The HKMA is actively preparing for the future integration of Central Bank Digital Currencies (CBDCs). In addition to advancements in retail digital currency solutions, the HKMA has made significant progress in developing wholesale CBDCs. The focal point of this progress is Project mBridge, which has reached the Minimum Viable Product (MVP) development phase. The HKMA’s objective is to launch this MVP in the coming year, marking a critical step toward creating a production-ready system for wholesale CBDCs.