China wants to finance trade via Blockchain

Hong Kong's Treasury Department is reviewing the development of Blockchain technology-based trade finance.

The Ministry of Finance of the Hong Kong Special Administrative Region is examining the development of a Blockchain technology-based international trade finance system. The news portal Caixin reports that such a trading system could be used, in particular, to finance the infrastructure projects planned as part of the Chinese "New Silk Road" project.

You can see blockchain means here.

A blockchain-based financing system would have great benefits for the companies involved, Caixin quotes Hong Kong's Treasury Secretary James Henry Lau. For example, the technology largely eliminates the need for people to engage in trade finance, saving time, reducing fraud opportunities, and providing more efficient processing. Since the blockchain system is decentralized and very secure, there is also a total capacity for middlemen and central monitoring bodies.

China's government launched the New Silk Road project (officially "One Belt, One Road") in 2013. To date, 69 countries, companies and organizations have joined him. The main objective is the infrastructural development of the Eurasian continent from China in order to build a dense trade network and to increase political influence.

In March of this year, the Hong Kong Central Bank had already presented a blockchain project to the public, working with six major banks and the consulting firm Deloitte on the digitization of commercial contracts and payment processing.

At the end of October, the central banks of Hong Kong and Singapore also signed an agreement to handle the settlement of both cities on the blockchain basis in the future.

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