Hong Kong’s central bank has publicized a partnership with Singapore intended to digitize trade finance using blockchain technology.
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“It is crucial for Hong Kong to enhance collaboration with other fintech centers,” said Normand Chan Tak-Iam, CEO of the Hong Kong Monetary Authority.
“We firmly believe that the time has come for trade finance to move into the digital era.”
The venture with the Monetary Authority of Singapore (MAS) will focus on a blockchain proof-of-concept termed the Hong Kong Trade Finance Platform (HKTFP).
The project is intended to digitize trade papers and decrease fraud in the industry.
The banks plan to create a cross-border substructure that would act as a link between HKTFP and a comparable platform in Singapore.
Chan declared the contracts were just a portion of the HKMA’s extensive smart banking initiative.
The program consists of a quicker payment system being deliberated in Hong Kong and developments encouraging banks to open their systems to technology companies.