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Block chain system launched in Hong Kong

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Hong, the autonomous territory of China possess an entirely unique political system compared to the other parts of the nation. The native economic condition is thus significantly affected by the same as well. Henceforth, the city does not follow the footprint of the hard-core Chinese crypto trend. Presently, the block chain-based trade monetary system is soon to become a major part of the significant trade projects of China. Block chain is also expected to diminish the time draining hours and complex paper works that are required to operate supply-chain finance transactions and trade finance.

Hong Kong with the high end currency technology will find it much simpler to validate each and every step of the complicated procedure and also verify the respective credentials of the involved parties. Plenty of bank-led trading finance platforms in Hong Kong that utilize the block chain technology are already on the go. Many other established Hong Kong-based business firms and groups are joining the; league to launch relevant businesses with implementation of the block chain system. The Hong Kong Monetary Authority’s project is one of the first and foremost government-backed trade finance platforms to do the same.

As per the sources, the regulator is on the verge of bringing the Hong Kong bank firms all together, rather that each bank trying to perform the same individually. The Hong Kong’s Securities and Futures Commission that is the SFC have announced that they shall be keeping an eye on the crypto and Initial Coin Offerings (ICO). As per the watchdog finance, the innovative currency system has certain risks entailed with it and thus will arbitrate at the right time. The newly emerging technology, as per predictions and expectations will add a sharp edge to the trade finance platform by cutting down on sharp practices, labour, substantial amount of documentation, manual efforts, etc. Experts say that counterfeit activities will be much easier to investigate.

Other than that, enterprises appeals more financing from banking firms that the amount required to fund the business often.  In that case, as the businesses or trades are registered in the block chain, all parties shall be able to see the financing level that has been requested. This will reduce the ability of obtaining excessive amount of funds or amounts beyond requirement. The platform of Hong Kong trade finance is indeed one of its most substantial schemes outside mainland China presently.

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Joel is an entrepreneur specialized in the international business development and project management. He graduated from Indiana University’s Kelley School of Business with a degree in Finance and International Business. He is currently working on decentralized autonomous organization (DAO) along with TechRar.

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