The Central Bank of Hong Kong will launch an interbank financial and trade blockchain platform
According to the Financial Times (FT), the financial regulator, in fact, the central bank of Hong Kong, will launch its own trading blockchain system in August, in which 21 banks will participate.
This joint program of the Monetary Authority of Hong Kong and the financial company OneConnect, which is the “daughter” of the Chinese company Ping An Group, aims, as the Financial Times writes, for a significant reduction in paperwork and spending on security.
The main goal of 21-sided cooperation is to reduce time and bureaucracy associated with situations when newly-minted companies are just starting to use banking services – by accelerating transactions.
With the help of the blockchain, “some” transactions will take place in just one day, whereas the current system, as FT writes, may take up to 14 days.
This initiative was announced back in November 2017, and is the first example of how the regulator, according to the deputy director of Ping An Jessica Tan, with the help of blockchain “unites banks” to improve trading financial transactions. The first such blockchain transaction was conducted in mid-May by the British bank HSBC, but only one bank (HSBC itself) participated in it, and its size was relatively small.
“This is trying to do not a separate bank, but a regulator trying to unite several banks,” said Teng.
Ping An has already developed several blockchain-based solutions for the Chinese market and hopes that this technology will be successful abroad. This is the second largest insurance company in China, whose assets total 4.7 trillion yuan (704 billion dollars). In 2016, she joined the consortium R3, which is developing the distributed registry.