The Hong Kong banking regulator and the de facto central bank announced a new collaboration with Singapore aimed at digitizing trade finance using Distributed Registries (DLT) technology.
The Chairman and CEO of the Hong Kong Monetary Authority (HKMA), Norman Chan Tak-lam, announced today that the joint project with the Monetary Authority of Singapore (MAS) will focus on a DLT proof. concept called Hong Kong Trade Finance Platform (HKTFP).
Having already seen the participation of seven Hong Kong-based banks, the project aims to digitize business documents and reduce risk and fraud in the industry. Ultimately, the authorities foresee the creation of a cross-border infrastructure that would serve as a bridge between HKTFP and a similar commercial platform in Singapore.
According to the South China Morning Post, Mr. Chan described this initiative as a "breakthrough" in distributed record technology, adding:
"We firmly believe that the time has come for trade finance to move into the digital age."
The CEO also announced a number of other programs aimed at boosting collaboration between Hong Kong and the Chinese city of Shenzhen, thus facilitating the operation of Fintech companies in both jurisdictions.
The HKMA, as well as the Law Society, Institute for Applied Research in Science and Technology of Hong Kong and other entities also published a white paper on the DLT that studies the potential of technology while recognizing that she can not be universal. for all financial applications and innovations.
According to Chan, research serves as a "cornerstone" helping to stimulate innovation in finance, as well as contributing to the development of "smart banking" in Hong Kong.
Image of Hong Kong via Shutterstock
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