It has been confirmed that Hong Kong and Singapore are to use Blockchain to collaborate on trade. It seems the two major trade centres will use Blockchain-based technology to link their trade finance platforms. This cross-border project represents another evolution in the way cryptocurrency technology is being used in the digital age.
Cross-border deal confirmed by HKMA
The Hong Kong Monetary Association were the first to break the news and clarify that a deal had been officially signed yesterday. They and the Monetary Authority of Singapore (MAS) have agreed to work together on upcoming fintech projects as a result of the stated co-operation. It is thought that this is with the aim of promoting further working relations in the area and allow for additional developments in the region on fintech projects.
Cryptocurrency leads the way
The choice of adapting Blockchain technology to foster greater ties between the two cities is significant for the continued evolution of the cryptocurrency industry. Interestingly, the HKMA had already begun using Blockchain technology in 2016 to start working on a new trade finance platform itself. This new platform was designed to help eliminate fraud, along with making the digitising and sharing of trade documents easier.
MAS also used new technology to develop a trade platform
At the same time as the HKMA were developing their new finance platform, Singapore was looking into doing the same. This is what has led to the recent signing of the deal between the two to develop one platform that will be used in future trade dealings. It is thought that the new platform, when ready, will lead to increased efficiency as some of the human work will be done by the new automated platform.
With rumours of new Blockchain and fintech projects between the two cities, it is an exciting time to be involved with cryptocurrency.