Hong Kong Monetary Authority (HKMA) and fintech company OneConnect, a subsidiary of the Chinese company Ping An Group, are launching a joint trading blockchain system. In total, more than 20 banks of Hong Kong will unite over a platform is set to accelerate transactions. The system also assumes a significant reduction in paperwork and spending on security.
Jessica Tan, deputy chief executive of HKMA, believes that this is an excellent way to improve the services provided by banks. She added that all this is achieved by combining the efforts of financial organizations.
A full-fledged launch of the system will take place in September this year. The initiative is the first step of a regulator to unite banks with the help of a blockchain.
WHY IS IT IMPORTANT?
The key goal of the regulator and banks' is cooperation to reduce the time and bureaucracy associated with situations where new companies are starting off to use banking services to open accounts and make money transfers.
With the help of the blockchain some transactions will be carried out in just one day, whereas now they may take up to 14 days.
By Ekaterina Ulyanova