Hong Kong’s banking regulator and de facto central bank has announced a new collaboration with Singapore aimed to digitize trade finance using distributed ledger technology (DLT).
Making the announcement today at a fintech event, the CEO of the Hong Kong Monetary Authority (HKMA), Norman Chan Tak-lam, said the joint project with the Monetary Authority of Singapore (MAS) will focus on a DLT proof-of-concept called the Hong Kong Trade Finance Platform (HKTFP).
Already having seen involvement from seven Hong Kong-based banks, the project is designed to digitize trade documents and reduce risk and fraud in the industry. Ultimately, the authorities plan the creation of a cross-border infrastructure that would serve as a bridge between HKTFP and a similar trade platform in Singapore.
According to the South China Morning Post, Chan described the initiative as a “breakthrough’ for distributed ledger technology, adding:
“We firmly believe that the time has come for trade finance to move into the digital era.”
The CEO also announced a number of other schemes aimed to boost collaboration between Hong Kong and the Chinese city of Shenzhen, making it easier for fintech firms to operate in both jurisdictions.
Hong Kong image via Shutterstock
The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at [email protected].
Powered by WPeMatico