Hong Kong Financial Development Bureau: Promoting Hong Kong's Development into a Leading Digital Payment Hub

The Financial Services Development Council (FSDC) today (2 November) released a report titled "Fintech Empowerment: Promoting Hong Kong's Development into a Leading Digital Payment Hub" at the Hong Kong FinTech Week, setting out a strategic vision to promote Hong Kong as a trusted, interoperable multi-currency and multi-rail payment hub. The rapid development of instant payment systems, digital assets and tokenised money, and agentic AI is reshaping cross-border value flows. With the growing adoption of global open financial messaging standards and multilateral payment platforms, these developments are driving cross-border payments to become faster, more transparent and more interoperable. Hong Kong's unique value lies in its ability to offer choice supporting multiple currencies, payment rails and settlement assets within a trusted, well-governed environment. Hong Kong's internationally aligned regulatory regime, well-developed financial infrastructure, leading position in offshore RMB business, and extensive networks connecting the Mainland and global markets provide a solid foundation for this. These advantages enable Hong Kong to fully capture the opportunities arising from the evolution of the global payment landscape. By promoting the coexistence and interoperability of different payment solutions, Hong Kong can both meet diversified market needs and maintain the flexibility to adapt to the continued evolution of technology and standards. Mr. Edmond Lau, Chairman of the FSDC, said: "Hong Kong's international status as an international financial centre is built on the global connectivity of its payment infrastructure. We now have a further opportunity to turn this connectivity into a lasting competitive advantage a secure, high-speed gateway for global value flows. By strengthening international cooperation and promoting the harmonisation of technology, standards and regulatory frameworks, we can realise our vision: Hong Kong as a leading digital payment hub, serving as a trusted 'payment switch' that bridges traditional and next-generation payment infrastructure, and connects different currencies and markets." The report sets out five policy recommendations aimed at creating an enabling ecosystem to promote Hong Kong's development into a leading digital payment hub: Optimise regulatory coordination and implement proportionate regulation: Establish a single access point, strengthen coordination across regulators, and implement a risk-proportionate, risk-based regulatory regime for the payment industry. Strengthen core payment infrastructure and continuously review arrangements for expanding participation: Extend and harmonise the service hours of the Clearing House Automated Transfer System (CHATS), progressively moving towards round-the-clock settlement arrangements; and, subject to appropriate safeguards, retain arrangements allowing eligible non-bank payment service providers to participate in core payment infrastructure through additional models, as a direction for future policy consideration. Leverage digital assets and tokenisation technology to drive payment innovation: Develop a unified ledger, enhance technical compatibility, support settlement finality of distributed ledger technology systems, and make supporting arrangements for the coexistence and application of stablecoins and tokenised deposits under harmonised standards. Build cross-border trust infrastructure and lead the development of AI agent payments: Study the wider adoption of digital corporate identity platforms through interconnection with regional and international frameworks; explore the establishment of a neutral, shared sanctions screening service; and leverage the I. Sandbox++ to promote interoperability standards and ecosystem development for AI agent payments. Play a leading role as a multi-rail and multi-currency super-connector: Position Hong Kong as a trusted, interoperable multi-currency and multi-rail hub connecting the Mainland and international markets. The above measures will help create a predictable and innovation-friendly environment, strengthen cross-border connectivity while safeguarding market integrity, and support Hong Kong in building a more sustainable, inclusive and future-ready payment ecosystem.