Central Bank of Honk Kong is transferring trade finance system to block-chain and link it to 21 bank including HSBC and Standard Chartered. The platform is developed by Ping An Group and intends to be the first major government project aiming to rebuild and global finance trading system that is worth $9 trillion. Honk Kong authorities expect blockchain to lower the time needed for paperwork, control of every step of the process and approval of interested parties. HSBC, Deutsche Bank and Rabobank developed their own platform for the optimization of transactions. In this regard, HK central bank is trying to implement the system that can be used by all the parties involved. The platform will belong to companies in partnership with the regulator. The exact number of companies remains unknown but they expect 21 bank to join the project. This technology is going to help lower the cost of all the services for the clients. It will allow companies to offer services to even small business owners. They expect the speed up of the process, instead of 2 weeks, now it’s going to take 1 day. Needless to say that it will prevent fraud and other illegal activities. |
