The Hong Kong Monetary Authority (HKMA), confirmed in a news post that it had signed a Memorandum of Understanding (MoU) with a subsidiary of the People’s Bank of China (PBoC).
Expected to begin in Q1 2020, the deal aims to connect HKMA’s blockchain-based trade finance platform eTradeConnect and China central bank’s Trade Finance Platform through a Proof-of-Concept trial that will improve their trade finance operations.
“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,” – HKMA.
The HKMA will also explore the Bank of International Settlements’ Innovation Hub in Hong Kong on the use of blockchain technology to digitize trade finance processes, according to the announcement.
“To lift Hong Kong’s fintech development to a new height, we must take a holistic ‘HK Inc.’ approach,” said HKMA CEO Eddie Yue.