Hong Kong, Singapore To Launch Blockchain-Based Project Linking Trade Finance PlatformsOctober 26, 2017 2:31 pm
A cross-border trade project based on blockchain technology linking trade finance platforms between Hong Kong and Singapore was announced Wednesday, Cointelegraph.com reported.
“The Hong Kong Monetary Authority (HKMA) and the Monetary Authority of Singapore (MAS) signed and exchanged a Co-operation Agreement (“Agreement”) in Hong Kong today (25 Oct. 2017) to strengthen co-operation on fintech, with a view to bolster ties between the two cities and fostering fintech development within the region.” – Hong Kong Monetary Authority (HKMA) announcement
In 2016, the report said, the Hong Kong authority worked with banks – including HSBC and Standard Chartered – to build a trade finance platform by using blockchain technology to digitize and share trade documents, automate processes and reduce the risk of fraud.
At the same time, Singapore announced plans to build a similar platform as well, the report said.
The managing director of MAS, Ravi Menon said: The cooperation between Hong Kong and Singapore on this project will “enhance the trade finance corridor between the two financial centers,” the report said.
One benefit of the new platform, the report said, is it could significantly increase the efficiency of trade finance in the future. It will replace humans to do time-consuming paperwork.
The linking the two platforms, the report said, is just a part of a broader plan between future blockchain collaboration and other fintech projects. Details about the cooperation will be announced by the two authorities next month, the report said.
– WN.com, Jack Durschlag