Members of the central banks of Singapore and Hong Kong have revealed that a number of banks have now joined their not too long ago announced blockchain-primarily based trade network.
Expected to launch by early 2019, the new network will now involve participation from more than 20 worldwide banks and financial institutions, a Enterprise Instances report says. The announcement of the new members of the project was made for the duration of the Singapore Fintech Festival on Thursday.
The network – called the Hong Kong Trade Finance Platform (HKTFP) – is a collaboration in between the Hong Kong Monetary Authority (HKMA) and the Monetary Authority of Singapore (MAS), aimed to digitize trade finance using distributed ledger technologies (DLT).
According to the officials from the two monetary authorities, the DLT pilot – which is described as a “international trade connectivity network” (GTCN) – is anticipated to set “new international standards” for the business and aims to trace worldwide trade flows in between Singapore and Hong Kong.
Li Shu-Pui, executive director of the HKMA stated that there have been concerns from bankers regarding data and transaction privacy. As a result, regulators need to contemplate regulations about DLT, he mentioned, given that it is a new kind of innovation in the “mission-critical” trade finance space.
Li indicated that he also expects European economic institutions to get involved in the project as it progresses.
Singapore image by means of Shutterstock
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Published at Fri, 17 Nov 2017 ten:20:06 +0000