Singapore and Hong Kong’ central bank have unveiled agreement to unite with trade finance platforms. Since, it is to strengthen Fintech and work on Blockchain technology. However, this approach helps to lessen potential fraud and errors in the multi-trillion dollar funding of international trade.
The pair of two cities’ central banks Hong Kong Monetary Authority and The Monetary Authority of Singapore (MAS) signed a Fintech Co-operation Agreement. The Joint announcement was on a collaboration in blockchain and further fintech developments.
Particularly, the partnership notable due to their geographical proximity. Therefore ideologies technology that has pitted the two cities as traditional rivals. Lately, there is migration from aggressive competition to co-operation in the financial sector.
Roy Teo, head of MAS’ financial centre development department in reference to the rivalry stated that,
“Traditionally as a financial centre, there’s that comparison between Singapore and Hong Kong. But when it comes to fintech, we recognize that there’s a lot of need for collaboration between the regulators”.
Moreover, the first collaboration will see the two financial authorities work on a cross-border trade by blockchain technology. Currently, the project’s details scarce but would prove a significant undertaking among two hubs.
Ravi Menon, MAS managing director said,
“This is one of our more significant fintech co-operation agreements, given the extensive financial and trade linkages between Singapore and Hong Kong. We are especially glad that we have a live project to enhance the trade finance corridor between the two financial centers”.
During the launch of HKMA’s FinTech day in Hong Kong the agreement was signed as part of the Hong Kong FinTech Week. Since, it is expected to get in 3000 executives from globally. Further, in mid-November, Singapore will hold its own FinTech festival wherein it is expects to unveil a technical report project’s phase 2.
Chief Executive of Hong Kong’s defacto central bank, Norman Chan added,
“Hong Kong and Singapore are the two-leading international financial centers in the region and are actively deploying fintech. Collaboration between the HKMA and MAS will create significant synergy for the development of fintech. It is more efficient fund flows between the two markets”.