The government of Hong Kong plans to create a system of trade financing based on the technology of Blockchain. The system should be beneficial for the country since it is involved in the initiative Belt and Road.
To save money and reduce the risk of fraud
In a speech at a forum, the secretary for financial services and the Treasury of Hong Kong, James Henry Lau, said that the technology Blockchain could significantly reduce the huge contribution of human resources, and time that generally requires the availability of trade finance. He added that technology can facilitate the business activities carried out in the framework of the program Belt and Road. According to Henry Lau, the integration of technology Blockchain can significantly reduce the risk of fraud and reduce the cost of business investment, thanks to regulations more effective.
When the technology Blockchain becomes a diplomatic asset
It is also important to recall what is the proposed Belt and Road. It has been designed to strengthen the commercial links between China and its global partners. The initiative was launched by the chinese president, Xi Jinping in 2013. The program currently has 69 countries, regions and international organizations as partners. In September 2017, several daily newspapers in hong kong have indicated that the monetary Authority of the special administrative region monetary planned to make equity participation in several projects of infrastructure construction.
The central bank of Hong Kong is also associated with its counterpart in singapore. This was in order to improve and maximise the trade and investment between the two financial centres in the world.
Source : Cointelegraph