Blockchain has received a fresh endorsement from China in the form of a development pact with the central bank of Hong Kong.
On November 6, in a news post, the Hong Kong Monetary Authority (HKMA) confirmed that it had signed a Memorandum of Understanding (MoU) with a subsidiary of the People’s Bank of China (PBoC).
However, the deal aims to create a Proof-of-Concept for a trade finance platform from Q1 2020, linking two existing projects: the HKMA’s eTradeConnect and the PBoC’s Trade Finance Platform.
The two central banks will be represented by subsidiaries of Hong Kong Interbank Clearing Limited and the Institute of Digital Currency of the PBoC.
The post adds:
“Once the connection has successfully been established, it will provide firms in both places with more convenient trade finance services and enable banks in Hong Kong to expedite the expansion of their trade finance business.”
<img src="https://www.cryptonewspoint.com/wp-content/uploads/2019/09/1000x-1.jpg" alt="china digital currency launch" class="wp-image-1983 lazyload" width="461" height="307" />
People’s Bank of China
Similarly, the news follows sudden endorsement of blockchain technology from Beijing, with President Xi Jinping’s personally appealing for its use to expand across the domestic economy.
So, it has been reported by China Money Network, a local Financial Media Outlet, that the Chinese regional governments and other entities have pledged blockchain funds worth $5.7 billion to further support.
Thus, Eddie Yue, the chief executive of HKMA, commented as part of the MoU signing:
“To lift Hong Kong’s fintech development to a new height, we must take a holistic ‘HK Inc.’ approach.” Eddie Yue
Source: chinamoneynetwork.com | hkma.gov.hk | cointelegraph.com