The recently announced Blockchain trade network has received a boost after more than 20 banks joined the project. This is according to the announcement made by the Central banks of Singapore and Hong Kong.
The countries are expected to launch the project in 2019 and will see the involvement of more than 20 global banks and financial institutions. The announcement of the inclusion of the new members was made on the 16th November during the Singapore Fintech Festival.
This collaboration is between Hongkong Trade Finance Platform and Hong Kong Monetary Authority and the Monetary Authority of Singapore is aimed at digitalizing trade finance using the distributed ledger technology (DLT). According to the reports released by officials from the two financial authorities DLT which is a global trade connectivity network is expected to set new worldly standards for the industry and its aim is to trace global trade flows between the two countries. (Hong Kong and Singapore).
According to Li Shu-Pui who is the executive director of Hong Kong Monetary Authority (HKMA), there have been concerns from financial institutions about data and transaction privacy. This is why the institution encourages banks to consider regulations around DLT. He went on to describe DLT as the new form of innovation in the trade and finance space. Shu-Pui is expecting financial institutions in Europe to join the project as it moves on.
By bringing the banks together, they expect to form a strong technology that will be used to protect investor’s funds. More to that all information sharing will be private. According to the developers, Blockchain is proven leader in technology that’s why they have embraced the project. Some banks have however not joined the project because it’s not operational yet. They are afraid of investing in a project that’s not guaranteed. It’s however expected that after its launch many financial institutions will become part of it.