As many as twenty banks may sign on to join the Blockchain powered trade network between Hong Kong and Singapore, according to local bankers. The agreement would move both nations into the spotlight in terms of institutional level Blockchain applications.
The twenty banks will join the already planned ‘coopetition,’ a term coined by the two national monetary councils. Generally thought of as competitors, the two nations patterning together to speed transfer of finance and digital documents will make a major splash in the financial sector in Asia.
Hong Kong faces a general struggle with China, while Singapore faces similar issues with Asean. Working together, the countries will have the opportunity to steer how the nations work together in trade. For example, currently, a shipment from one nation to the other takes approximately a day, while the documentation takes as much as a week. Digitizing this information on the Blockchain would cut that down to just seconds.
Together, the nations form a strong fiscal alliance of two major hubs, cementing the concept that previously competing countries can work together. According to one official, “The message is that when you work with one of us, you work with both of us.”