? " so what's this next phase? while we have yet to chart out our fintech 2030 strategy, i can think of two areas that the hkma should focus on in the next few years. our first area of focus is tokenisation, including the novel idea of " finternet " coined by the bank for international settlements ( bis ). let me first make clear that tokenisation is not the same as crypto - assets. there has been some confusion because they both ride on blockchain technology, but don't mix them up. crypto - assets are mostly speculative and our stance is to let the market grow and develop while putting guardrails around it to protect investors. tokenisation, on the other hand, is an innovative way to record the value and ownership of money and assets in digital form on a programmable ledger. this will make it much easier for individuals, corporates, and financial 2 / 5 bis - central bankers'speeches institutions to access and trade these assets, thereby creating a more inclusive ecosystem that benefits everyone, whoever and wherever they are. we believe that tokenisation has the potential to create hyper - connectivity among users, data, and services that is essential to drive economic progress. this calls for a visionary shift to align with the constant advances in technology. the bis has also recently introduced the " finternet " concept. this envisions an internetlike network of interoperable financial ecosystems that places individuals and businesses at the heart of financial interactions. many of the ideas and concepts from the " finternet " resonate closely with the hkma's tokenisation project. we envision a future where tokenisation integrates seamlessly with financial and real - world assets, enabling operations and transactions otherwise impossible with today's technology. now you might be wondering, how can something as virtual as tokenisation connect with tangible assets? let's look at trade finance. imagine you're an sme importing goods from overseas. traditionally, you'd face a mountain of paper documents, like bills of lading and invoices. with tokenised electronic bills of lading, you can now transfer these digital assets to a financial institution in exchange for funding. unlike a mere pdf copy of a bill of lading, this approach allows you to track real - time shipment status on the blockchain, eliminates paper, reduces the need for verification, and lowers fraud risks. we are actively exploring this through the

ensemble sandbox to resolve frictions in trade finance. tokenisation also ties in with green and sustainable finance, as it may open up new business models and opportunities for businesses and investors. for example, tokenised carbon credits traded on blockchain offer better transparency and credibility in carbon data, helping us tackle the issue of double counting that bedevils carbon trading today. another example can be found in the infrastructure for the electric vehicle ( ev ) industry. by leveraging real - time data from ev charging stations, we can turn the energy generated into a tokenised revenue stream for institutional investors. we are looking closely at this model, as it has the potential to be replicated in various settings, mobilising funds to support the transition to a low - carbon economy. our second area of focus is artificial intelligence ( a. i. ) and data, which will help build a smarter and data - driven financial future for everyone. i would like to expand on those two keywords " smarter " and " data - driven ". when i say " smarter ", i'm talking about the need to promote digitalisation in the banking industry, while ensuring we have the right safeguards in place. in recent years, the banking industry has been leveraging a. i. to promote efficiency, analyse data, and enhance customer experience. the hkma stance is clear : we are committed to encouraging responsible a. i. adoption. back in 2019, we already outlined the high - level principles on the use of a. i. by banks, and this policy guidance remains relevant today. 3 / 5 bis - central bankers'speeches then we see the explosive uptake of generative a. i. ( gena. i. ) in the past two years. gena. i. has the potential to transform how financial institutions operate, innovate, and engage with their customers. as we stand at the dawn of this revolution, the hkma recognises the opportunity to provide more targeted support to accelerate gena. i. development, by collaborating with the best minds from various sectors. to achieve this, we have launched various cross - sectoral initiatives, including the finetech series, research projects, and training sessions, all aimed at expediting digital transformation. financial institutions are actively exploring the vast potential of gena. i., from risk assessment to anti - fraud measures and customer interactions. in august this year, we launched the gena. i. sandbox in