eddie yue : opening remarks - launch ceremony for project ensemble sandbox opening remarks by mr eddie yue, chief executive of the hong kong monetary authority, at the launch ceremony for project ensemble sandbox, hong kong, 28 august 2024. * * * good afternoon everyone, and a warm welcome to you all to the launch ceremony of the project ensemble sandbox. today's event marks a significant milestone in our journey towards creating a dynamic and innovative digital asset ecosystem in hong kong. i don't think it's an overstatement to say that we are living through a transformative era in the financial industry. the rise of digital money and new technologies is reshaping the financial landscape. the central bank community has responded with its own innovation efforts around central bank digital currencies, or cbdcs, which have the potential to underpin the new digital economy. since 2017, the hkma has been at the forefront of research and innovation on cbdcs, with projects like mbridge, which has recently reached the minimum viable product ( mvp ) stage, and e - hkd, which will commence its phase 2 pilot programme shortly. but we recognise that cbdcs will not, and should not, be the only force driving innovation. tokenisation, which like cbdcs often rides on blockchain technology, also provides the foundation for innovative pilots looking at how financial transactions can be conducted through the tokenisation of commercial bank money and both financial and real - world assets. tokenisation has the potential to make financial transactions more efficient, more transparent and less costly, and may represent the future of finance. today, i would like to outline the role that the ensemble sandbox is intended to play within the hkma's broader vision of cultivating a dynamic digital asset ecosystem in hong kong. project ensemble we launched project ensemble in march this year with the aim of supporting and advancing the development of the tokenisation market in hong kong. at the core of project ensemble are two key elements : collaboration and the sandbox. as the establishment of the architecture community shows, the project brings together industry participants, regulators and innovators to shape the future of digital assets. meanwhile, the ensemble sandbox is a new financial market infrastructure that facilitates the full life cycle of a tokenised asset transaction : from the creation and trading of tokenised assets, through payment and settlement using tokenised commercial - bank deposits, to final interbank settlement through cbdc issued by the hkma. 1

which has proved essential to growing our global financial business and underscores our legacy of innovation in financial infrastructures. however, to remain competitive in an ever - evolving landscape, we must continuously build upon this rich heritage. as financial technology takes centre stage in the future of finance, we invite you to join us in showcasing hong kong's innovative mindset and ability to conduct pioneering work in the tokenisation market. by doing so, we not only reinforce hong kong's status as a premier international financial centre, but also create an environment for new business opportunities, talent and expertise. our commitment to innovation will continue to draw global players and skilled professionals to our city, fostering a vibrant digital asset ecosystem. together, we can position hong kong as a leader in the financial technology revolution, ensuring that we remain at the forefront of the global financial landscape. thank you. 3 / 4 bis - central bankers'speeches 4 / 4 bis - central bankers'speeches