Blockchain Technology to Enhance Financial Integration in Greater Bay Area

03/16/2023 03:54 • Metaverse & Beyond • 122 views

According to reports, according to a press release from the Hong Kong Special Administrative Region government, the Hong Kong Monetary and Financial Research Center, which is responsible for research work under the School of Finance of the Hong Kong Monetary Authority, has released a financial research report titled “The Greater Bay Area Cross Border Payment and Settlement System: Current Practices and Latest Developments.”. According to the report, as the underlying technology of digital currency, 59% of respondents believe that blockchain is a relevant or highly relevant technology to strengthen financial integration in the Greater Bay Area. Respondents believe that blockchain can be used for multiple operations in cross-border transactions, including ensuring the accuracy and security of cross-border payment and settlement information, customer authentication, and AML/CFT review. In addition, the report also shows that as of the third quarter of 2022, the mBridge project involved more than 160 payment and foreign exchange transactions, with a total amount of over 171 million Hong Kong dollars. The development of the project will continue until it becomes a system that can be put into production.

Hong Kong Monetary Authority: 59% of respondents believe that blockchain is a technology related or very relevant to enhancing financial integration in the Greater Bay Area

Analysis based on this information:

The Hong Kong Monetary and Financial Research Center has released a financial research report titled “The Greater Bay Area Cross Border Payment and Settlement System: Current Practices and Latest Developments.” According to the report, blockchain technology can play a significant role in strengthening financial integration in the Greater Bay Area. The report states that 59% of respondents believe that blockchain is a relevant or highly relevant technology to this end.

Blockchain has the potential to make cross-border payments and settlements more accurate and secure by ensuring the accuracy and security of cross-border payment and settlement information, customer authentication, and AML/CFT review. Blockchain technology can be applied to multiple operations in cross-border transactions, making the process more streamlined and efficient.

The report also highlights the mBridge project, which has involved more than 160 payment and foreign exchange transactions as of the third quarter of 2022, with a total amount of over 171 million Hong Kong dollars. The development of this project is ongoing and aims to create a system that can be put into production.

The Greater Bay Area, which includes Hong Kong, Macau, and nine cities in Guangdong province, China, is a crucial economic hub with a population of over 70 million and a gross domestic product (GDP) of approximately $1.6 trillion. The region’s financial integration is crucial for economic growth and stability, making blockchain technology crucial in this regard.

The report’s findings suggest that blockchain technology can enhance the Greater Bay Area’s cross-border payment and settlement system by improving security and accuracy, making financial transactions more efficient and cost-effective. As blockchain technology continues to evolve, it has the potential to transform the financial services industry and improve cross-border transactions worldwide.

In conclusion, the report’s valuable insights suggest that blockchain technology is necessary to strengthen financial integration in the Greater Bay Area. The mBridge project’s ongoing development aims to leverage blockchain technology to create a cross-border payment and settlement system that is efficient, secure, and scalable. With blockchain’s continued evolution, such projects have the potential to yield significant benefits for the global financial services industry.

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