Blockchain Technology as a Solution for Cross-border Payment and Settlement Systems

03/16/2023 03:54 • Digital Disruptors • 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 recently released a financial research report called “The Greater Bay Area Cross Border Payment and Settlement System: Current Practices and Latest Developments.” The report shed light on the use of blockchain technology for cross-border transactions and financial integration in the Greater Bay Area.

According to the report, more than half of respondents (59%) believe that blockchain technology is relevant or highly relevant to strengthen financial integration in the Greater Bay Area. They believe that blockchain can be used to ensure the accuracy and security of cross-border payment and settlement information, customer authentication, and Anti-Money Laundering/Counter Financing of Terrorism (AML/CFT) review.

With blockchain technology, transactions can be recorded and stored securely and transparently, making it possible to verify and trace the authenticity of each transaction, thus reducing the risk of fraud and other financial crimes. In addition, blockchain technology can create smart contracts, which can help automate and streamline cross-border payments and settlements, further enhancing efficiency and reducing costs.

Furthermore, the report also highlighted the progress of the mBridge project, involving more than 160 payment and foreign exchange transactions with a total amount of over 171 million Hong Kong dollars as of the third quarter of 2022. The development of the project will continue until it can be put into production.

Overall, the report suggests that blockchain technology can greatly benefit cross-border payment and settlement systems in the Greater Bay Area. It can enhance efficiency, reduce costs, and increase security, and transparency in these transactions. As such, it is important for financial regulators and other stakeholders to continue exploring the use of blockchain technology and its potential benefits for cross-border transactions.

In conclusion, the report provides insights on how blockchain technology can be used for financial integration and cross-border transactions in the Greater Bay Area. It highlights the importance of exploring the potential of this technology in the finance industry to create more secure, efficient, and transparent financial systems.

This article and pictures are from the Internet and do not represent aiwaka's position. If you infringe, please contact us to delete:https://www.aiwaka.com/2023/03/16/blockchain-technology-as-a-solution-for-cross-border-payment-and-settlement-systems/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.