The Hong Kong Monetary Authority (HKMA) has unveiled the next phase of its Fintech 2030 strategy, focusing on the integration of artificial intelligence (AI) with enhanced governance and risk management. HKMA CEO Eddie Yue announced the launch of Project Sage to examine the application and governance of “agentic finance,” AI systems that can execute tasks on behalf of users. The authority aims to both promote AI application and pay attention to governance, with a cross-sector expert panel exploring matters such as use cases, sandbox testing, interoperability standards, and governance safeguards. The HKMA is also issuing a discussion paper on banks’ use of agentic AI, seeking views on governance models, responsibility arrangements, and a possible central register of trusted agents. Yue indicated that the goal is to set rules that facilitate innovation while managing risks. Additionally, the HKMA will collaborate with the Hong Kong University of Science and Technology to develop a post-quantum cryptography toolbox, aiding banks in preparing for the challenges posed by advances in quantum computing. On tokenisation, the HKMA is introducing tokenised central bank money to enable 24/7 settlement of interbank tokenised deposits and is expanding the number of participating banks to support cross-lender transfers around the clock. Yue highlighted potential benefits, including real-time global liquidity management and flexible, secure asset allocation for retail investors, who could invest in various tokenised financial products at any time. The HKMA is further piloting tokenised Exchange Fund Bills in the secondary market and exploring the use of regulated stablecoins as a payment channel. Yue emphasized that innovation must be accompanied by robust governance and risk management to maximize its benefits.