. beyond tech 26. my third reflection is that the key to success is “ beyond tech ”. ( not “ biontech ” the vaccine! ) here i am referring to the need to go well beyond technology to create network effects. 27. projects that fill a glaring gap in available services, as was the case with fps for example, may achieve quick adoption more easily. but for other projects that seek to replace current products or practices, adoption could be an issue even if the new product or experience is far superior to what we have currently. 28. let me illustrate this using our cdi initiative. the technology to construct this infrastructure and connect all parties is relatively simple. creating a conducive environment to attract all stakeholders to join is far more challenging. 29. the project team spent most time not on technology, but in creating a commerciallyviable arrangement to ensure that there ’ s something for everyone : banks can use data to manage credit risks ; data providers can earn fees ; and data owners can borrow more easily and cheaply. so, the key to success for cdi clearly lies beyond technology. we need to find the right commercial incentive for all to benefit and create the network effect. 30. similarly, for the mbridge project, technical interoperability is key but relatively straight forward. the platform now has the flexibility to allow central banks to easily connect through cbdcs or traditional payment systems. but that won ’ t attract more jurisdictions to join by itself. to do that, the platform needs to account for policy and business challenges. how to build - in different regulatory requirements like anti - money laundering, how to ensure sufficient on - chain foreign exchange liquidity, or how to develop a shared legal framework are all challenging but necessary tasks. the project team will focus on these issues, which are well beyond technology, in taking the project to its next stage. closing 31. the hkma began its fintech journey six years ago. we have come a long way, reached some important milestones, kept pace with our peers, and are now pressing on into uncharted territory. but like everyone else, we are still exploring, experimenting and learning. and as we continue our journey, we will stay radically open - minded, learn from our failures and keep trying, and go well beyond technology to achieve network effects. 32. as i said at the beginning, hong kong will continue on the road of fintech adoption. many exciting developments are taking place, and

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