The Chinese government isn’t simply making pro-blockchain statements but is also backing them up with required action where necessary. According to reports, a blockchain-based partnership has now been formed between China and Hong Kong to develop trade finance in both countries.
The Hong Kong Monetary Authority (HKMA) recently announced that a Memorandum of Understanding (MoU) has been signed with the People’s Bank of China (PBoC), to produce a proof-of-concept platform for trade finance. The new platform is expected to go live sometime in the first quarter of next year and will connect both countries’ trade platforms including the Trade Finance Platform for the PBoC, as well as the eTradeConnect from the HKMA.
When the platform goes live in 2020, companies in both countries that need specific services regarding trade finance will be able to take advantage of the platform and also expand their business as well.
The HKMA has also said that it is currently conducting a research project in collaboration with the Bank of Thailand, and has been at this since May 2019. Called Project LionRock-Inthanon, the project is aimed at studying Central Bank Digital Currencies (CBDC) and how they can be used to easily facilitate cross-border payments, with a focus on how banks in both Hong Kong and Thailand can take advantage of this. The report will be published sometime in the first quarter of next year.
Hong Kong is also shining more light on the crypto industry as it recently created new rules for crypto fund managers.
Image Credits: Pixabay
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