If there were just two words to encapsulate the theme of this year’s Hong Kong Fintech Week, artificial intelligence ( AI ) and digital assets would be the most appropriate.

The city’s annual flagship fintech event ( November 3 to 4 ) has again served as a venue for regulators, entrepreneurs, as well as financial and corporate leaders to discuss thoroughly the latest developments around AI, digital assets, and how these transformative innovations are accelerating the fusion of technology and finance – now and in the future.

Across the multitude of panel discussions during the event, the most frequently heard words are AI and digital assets. Participants from China, Southeast Asia, and the Middle East talked enthusiastically about the outlook of these disruptive technologies.

In their keynote speeches during the morning sessions, regulators focused on Hong Kong’s unique role as an international financial centre and how AI and digital assets could transform its future development, and announced new policies to strengthen the city’s fintech competitiveness.

Eddie Yue, chief executive of the Hong Kong Monetary Authority, unveiled Hong Kong’s fintech plan for 2030, which encompasses over 40 initiatives under four strategic pillars: data, AI, resilience, and tokenization – collectively known as the DART strategy – to enhance Hong Kong’s preparedness in the fintech era. The blueprint’s explicit reference to AI and tokenization indicates that Hong Kong wants to lead efforts in setting the standards for these emerging fields.

Julia Leung, chief executive officer of the Securities and Futures Commission ( SFC ), unveiled a circular calling on SFC-licensed virtual asset trading platform operators to share a global order book with overseas affiliates, a move that will benefit Hong Kong’s virtual assets liquidity and broaden SFC’s role in regulating digital assets.

In the afternoon sessions, financial and business leaders took a deep dive into the wide-ranging opportunities ensuing from the real-world application of AI and asset tokenization.

In one panel, “Tech megatrends and the next $1 trillion asset class”, panellists enthused on the enormous potential of stablecoins in digital assets.  

During the event, The Asset talked with representatives from fintech companies and regional banks. Nearly all of them were very positive on the prospects of stablecoins and their future application in cross-border trade and payments.

With regulations now in place or taking shape in at least 11 jurisdictions globally, including Hong Kong, Japan, Singapore, the United Kingdom, the United States, and the United Arab Emirates, stablecoins are set to transform cross-border payments – and the global financial system.

“Now that the stablecoin is there, we cannot undo it, and the only way forward is to coordinate with regulators, clarifying the standards, and be ready for its transformative role to take place,” says one fintech representative.

Photo: GovHK