As the crackdown on cryptocurrency continues in China, research and development is running full steam ahead in Hong Kong.
Recently, James Henry Lau, Secretary for Financial Services and Treasury in Hong Kong made statements regarding a trade financing system powered by blockchain technology.
According to Lau, who spoke at a forum on November 10, 2017, a blockchain-based system could yield “great benefits.” One of the manners in which such technology might be applied would be to strengthen trade in China’s Belt and Road initiative, where trade generally takes place between small and medium sized firms. According to Lau, a blockchain based system would eliminate the need for centralized organization and middlemen.
As per the report, Lau provided details on exactly how a blockchain powered trade system would benefit Belt and Road trading partners:
“This technology could cut the huge input of human resources and time that trade financing traditionally requires, reduce chances of fraud and lower companies’ investment costs through more efficient settlements.”