Hong Kong has furthered its ongoing effort to become a financial bridge for China by signing a Memorandum of Understanding (MoU) with Shanghai to build cross-border blockchain rails for digitized cargo trade and finance cooperation.
The MoU between the Hong Kong Monetary Authority (HKMA), the Shanghai Data Bureau, and the National Technology Innovation Center for Blockchain was announced on March 2 and formalizes plans to develop a shared digital platform linking trade data, electronic bills of lading, and financing systems.
“The collaboration leverages the unique advantages of Hong Kong as a ‘super connector’ and ‘super value-adder,’ with its connections to both the Chinese Mainland and the world, to support Shanghai’s integration with the international data ecosystem through Hong Kong,” said the Government of Hong Kong, in a press release.
It added that the MoU “aims to deepen the collaboration between Shanghai and Hong Kong in areas of digitised cargo trade and finance.”
Under the MoU, the named Hong Kong and mainland authorities will jointly conduct research on digital technology and its applications, including working together to examine the use of digital technology to develop a “cross-border platform” under the HKMA’s Project Ensemble framework, which enables real-value transactions involving “tokenized deposits and digital assets within a controlled pilot environment.”
Specifically, the new joint initiative will explore the use of electronic bills of lading—a legal document that is provided by a carrier to the shipper—and blockchain-based documentation to streamline trade finance, while connecting with Hong Kong’s Commercial Data Interchange and CargoX to facilitate secure data sharing.
“This marks an important milestone in the collaboration on financial innovation between Shanghai and Hong Kong, and underscores the joint commitment to strengthen the collaboration between the two jurisdictions in areas of digitised cargo trade and finance,” said Howard Lee, Deputy Chief Executive of the HKMA. “We look forward to driving innovative application of digital technology… as well as facilitating the integration of cargo and trade data in the Chinese Mainland with the international data ecosystem through Hong Kong.”
This sentiment was echoed by Dr. Shao Jun, Director of the SDB, who said the joint signing of the MOU was “a significant step towards deepening co-operation between Shanghai and Hong Kong on data.”
He added that “This collaboration will fully leverage Shanghai’s strengths in data integration and commercialisation, working in tandem with Hong Kong to realise innovative applications in digitised cargo trade, and finance.”
The MoU marks the latest milestone in Hong Kong’s ongoing effort to make itself a digital asset hub and testing ground for blockchain technology, while digital currency remains largely prohibited in mainland China.
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Source: https://coingeek.com/hong-kong-shanghai-to-put-cargo-data-on-blockchain/
