Global Trade Connectivity Network connects Hong Kong and Singapore

More than 20 banks have announced their intention to join the Global Trade Connectivity Network of Hong Kong and Singapore. The blockchain-based network is designed to facilitate trade between the two financial centers and improve communication.

The Monetary Authority of Singapore and the Hong Kong Monetary Authority have exchanged a Memorandum of Understanding in Singapore on November 15. The memorandum is based on establishing the Trade Connectivity Network. The network will provide a cross-border infrastructure to digitize trade using blockchain technology.

According to the announcement of the two metropolises at the Fintech Festival on Tuesday, the Global Trade Connectivity Network could set new global standards for the billion dollar industry. The aim of the cooperation is primarily to dissolve the inefficiencies of the paper money-based financial system. Instead of organizing time-consuming and labor-intensive intermediary transactions, Blockchain could greatly simplify these processes. Smart Contracts & Co. could automate many of the processes.

The aim of the financial alliance is therefore to bundle global trade flows that run through the two partners. Singapore will be responsible for the Association of Southeast Asian Nations (ASEAN) and Hong Kong for China. A look at Fujitsu's newly announced extended smart contracts could be helpful in the development.

The basis of the Global Trade Connectivity Network

The Global Trade Connectivity Network is the seal of an existing cooperation between China and Singapore on Blockchain & Co. We recently reported that China's leading crypto exchanges had relocated to Hong Kong. After the ban on the crypto-exchange Bitkan by the Chinese authorities, the owners of the stock exchanges felt forced to relocate to Hong Kong, as this is a special administrative zone. The authorities had previously declared ICOs and the exchange of crypto-fiat currencies illegal.

The stock exchanges and traders have then fueled the switch to P2P networks. Despite the detention of the operators, the stock exchanges have moved their location. Also in Singapore, the authorities are more open to Bitcoin & Co. than China, which favors the merger of Hong Kong and Singapore.