/ 4 bis - central bankers'speeches the sandbox serves four major purpose : a. first, it enables industry participants to explore the use case for tokenised assets in a controlled environment ; b. second, it allows industry participants to test and review the technical compatibility among digital assets, tokenised deposits and cbdcs ; c. third, the technical parameters and design protocols of the pilot use case will serve as important inputs in setting common industry benchmarks for tokenisation ; and d. and finally, it promotes innovative use cases that contribute to resolving pain points in financing the real economy, including in supply chain financing. the sandbox will also cover cross - border payment functionalities. in relation to this, i would like to highlight our recent collaboration with the banque de france, where our sandbox and their equivalent system have been successfully connected. pilots have been done to demonstrate that atomic cross - border settlement can be performed through the linked systems. under the mou signed between the two institutions, we will continue to experiment with innovative cross - border pilots in cbdcs and tokenisation. central banks are well positioned to lay the foundations for the tokenisation ecosystem. but for the trend to take off, we need industry innovators to actively participate, to try out new use cases, and to assess their commercial viability and scalability. we need to get into this together. our theme today a€ “ " tokenising together, today and tomorrow " or four " t " s as our team calls it - is more than just a slogan. it embodies the essence of project ensemble, and represents a strategic path for collaboration. allow me to elaborate on how we plan to put these four " t " s into action. tokenising together " tokenising together " captures the spirit of " co - creation ", which is central to project ensemble. the word " ensemble " indicates cohesion and unity, which reflects our wish to unite industry efforts to push forward hong kong's tokenisation market. in fact, the participation of so many of you today is a clear example of how such an " ensemble " is already being brought to life. since the establishment of the architecture community in may, we have been working closely with community members to co - develop the sandbox architecture and interoperability standards, which are foundational to the successful launch of the sandbox. i would like to congratulate all our banks in the architecture community on successfully integrating their tokenised deposit infrastructure

several broad themes, which to some degree overlap. these areas are : basic monetary and financial stability – the hkma ’ s core mission ; the capacity of our financial services industry – specifically the ongoing upgrading of competence and skills, which i like to call the “ soft power ” of the industry ; the issue of financial inclusion – how we make sure the financial services industry serves the whole community, including those market segments that may be less profitable ; the role of technology – a fast - changing aspect of how we all do business, which brings huge potential benefits, but also some serious possible threats ; 1 / 5 bis central bankers'speeches and the overall concept of culture – the individual and corporate qualities without which there is no trust and the system fails. these include qualities like integrity, honesty, openness and respect. 11. i would like to go over these areas – not just to look back at what all of us here today have achieved, but to think about what lies ahead. monetary / financial stability 12. i would like to start with our core mission – the stability of our monetary and financial system. 13. many of us here today are old enough to remember times when hong kong suffered a serious currency crisis, as well as bank runs and bank failures. to the younger generation, this is hard to imagine. 14. i will not go into detail about the linked exchange rate system today – i will just say that currency stability is something the whole of hong kong takes for granted. it is a fundamental priority of the hkma to ensure that the community can have full confidence in the system. 15. confidence in our banks is also key to the functioning of our economy and society. and our work in this area in the last 10 years has affected all of you here today. 16. i think the most high - profile example is the loan - to - value ratio and debt - serving ratio limits on property mortgage loans. the last 10 years have seen strongly rising property prices, and competition between banks has been fierce. to some observers, including home - buyers, mortgage caps seem like a nuisance and make it harder to buy a property. but to the hkma, it is an important matter of credit risk management and the stability of the banking system. we call these measures “ counter - cyclical macroprudential ”. and it would be highly irresponsible of us if we did not impose these limits. 17. this is also the case with mainland - related lending. you