Hong Kong’s central bank is pushing ahead with its digital currency and fintech infrastructure under the “Fintech 2025” strategy

Hong Kong is setting its sights on the next phase of digital finance as the Hong Kong Monetary Authority (HKMA) advances its central bank digital currency (CBDC) agenda and strengthens data connectivity across the financial ecosystem. 

Eddie Yue, Chief Executive Officer (CEO), HKMA, shared these plans in his latest article, which also outlined the achievements they have made so far in their “Fintech 2025” strategy. Yue also discussed the future direction of the initiative, which aims to cement Hong Kong’s position as a global fintech leader.

Enabling the digital economy with strong infrastructures

Yue stated that “Financial infrastructure is like a highway, enabling capital and financial assets to travel safely and efficiently through our economy.”

The CEO pointed out the need to build this financial infrastructure, stating, “For Hong Kong’s digital economy to thrive, not only do we need the above-mentioned ‘soft infrastructure,’ robust financial ‘hard infrastructure’ is equally crucial.”

There’s no shortage of infrastructure currently, as Hong Kong runs the Real Time Gross Settlement (RTGS) system, which operates across four currencies.

Also, its Faster Payment System (FPS), which was launched in 2018, has become a fixture of daily transactions. FPS is not limited to Hong Kong, as it has been connected with systems in Thailand and mainland China, creating a cross-border payment network that allows instant transfers between economies.

While the leadership acknowledges the need to build a strong infrastructure, it is not an indictment of the current ones in Hong Kong but a call to action to build for the present and future, where digital finance is a main feature. The city has been working on building on the already established infrastructure, and one of these developments is the digital Hong Kong dollar, or e-HKD, which the HKMA has been exploring since 2017.

The authority recently completed an e-HKD pilot program, and it is now exploring introducing it in “retail scenarios for the general public.” The e-HKD, issued directly by the HKMA, carries no credit risk and is initially being tested for wholesale payments, particularly in international trade settlements.

One example of the e-HKD’s success was Project mBridge, a cross-border initiative linking the e-HKD with the CBDCs of mainland China, Thailand, and the United Arab Emirates. Project mBridge reportedly hit the minimum viable product stage (MVP) in 2024, and it has already reduced the time required for cross-border transactions from days to seconds.

The HKMA launched Project Ensemble to promote a tokenization ecosystem that supports the conversion of real-world assets, such as money or securities, into digital tokens in 2024. The project has done over 20 sandbox experiments with local financial institutions and collaborated with international financial organizations such as the central banks of Brazil, France, and Thailand, among others.

Yue’s analogy about digital islands and bridges

The Commercial Data Interchange (CDI) is the poster child of what Yue describes as the “digital bridges” initiative, covering payments, e-commerce, and import/export records.

Launched in 2022 to link banks with data providers, the CDI already covers 26 banks and 17 data providers. It has also expanded to include government data sources. As of September 2025, it had facilitated more than 71,000 loan applications and reviews, as well as HK$58.1 billion in approved credit.

The city’s Open Application Programming Interface (API) framework and Interbank Account Data Sharing (IADS) service are more examples of Hong Kong’s progress in data connectivity.

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