China, Hong Kong Partner on Mutual Blockchain Efforts
- The new a trade finance platform should connect two already existing platforms and provide more convenience.
- The recent Chinese endorsement of blockchain technology is already underway as regional government has gathered almost $6 billion.
The national flags of China and Hong Kong. CNN
Despite the political tensions between China and Hong Kong, it looks like their financial relationship is progressing as China just endorsed a development agreement with Hong Kong’s factual ‘central bank’.
The news was confirmed by the Hong Kong Monetary Authority (HKMA) via a news post from November 6th that announced the Memorandum of Understanding (MoU) that was signed with a branch of the People’s Bank of China.
The aim is more convenience
The memorandum was created with the intention to develop a trade finance platform proof-of-concept, starting from Q1 2020. The new platform should connect their two live projects: the Bank of China’s Trade Finance Platform and HKMA’s eTradeConnect.
Of course, the two banks will be represented by subsidiaries in this mutual effort – the Institute of Digital Currency from the Chinese side and the Hong Kong Interbank Clearing Limited.
As the news post explains:
“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.”
China’s investment in blockchain technology
The warm Chinese embrace of blockchain technology has been ratified by president Xi Jinping who personally called to its usage throughout the country with the aim to boost the economy.
As regional financial media China Money Network noted on Wednesday, this endorsement is on full throttle already. Regional governments and other organizations guaranteed blockchain funds of $5.7 billion for additional support.
Part of this almost $6 billion is a $14.3 million fund (100 million yuan) from 1911 Group.
Eddie Yue, who is the HKMA chief executive, commented on the signing of the memorandum:
“To lift Hong Kong’s fintech development to a new height, we must take a holistic ‘HK Inc.’ approach.”
- The head of China’s central bank digital currency institute said the e-CNY has undergone a major upgrade, and should be made available as an option in all retail scenarios.
- The PBOC official noted that platforms can integrate the CBDC in the short term using QR codes, and focus on upgrading their payment tools in the long run.
Office building of the People’s Bank of China. Flickr
- The team behind Multichain confirmed that their CEO was detained in China on 21 May, and that all of his electronic devices were confiscated by the local police.
- The CEO’s sister moved the project’s remaining funds to wallets under her control on 9 July, and several days later was also detained by the police, leaving the team with no funds.
- The decision has placed Hong Kong in line with other common law jurisdictions that had previously ruled crypto had the same attributes as property.
- This will give liquidators in Hong Kong greater clarity on how to handle crypto held by companies that are winding down.