Hong Kong Collaborates With Thailand For Cross Border Token Projects

Hong Kong collaborates with Thailand for more efficient payment methods and crypto tokens along with the central banks which are filling that role. Both of the countries just announced a joint agreement to utilize the digital currencies in order to provide quicker payment in bilateral trade as we are reading further in the crypto news.

The central banks are starting to realize that the options for cross border payments are outdated, too expensive and very slow which is considered to explain all the elements of the SWIFT system. The explosive growth of the crypto industry which is a couple of years old has outlined how easy, cheap and fast it is to send money across the world via an immutable distributed ledger. Countries in Asia are now looking towards crypto to speed up and ease the process of sending finances overseas. This is why Hong Kong collaborates with Thailand to also embrace the blockchain and crypto technology.

According to the reports, both of the nations have entered an agreement to launch a two-tier digital token and to also create a prototype for cross-border transfers. The idea was named as the Project LionRock Inthanon and the first tier includes the launch of a crypto token to participating banks. According to the Hong Kong Monetary Authority, the second tier involves the banks distributing the crypto tokens to the corporate customers for settling the payments. The collaboration between the bank of Thailand and the HKMA was established in May.

Both of the nations have bilateral traders worth an estimated $20 billion each year and the new system will give the businesses a competitive edge for the inflated exchange rates mechanisms between the currencies. The new project will stream cross-border transfer and payments between the banks and companies by replacing cash as the People’s Bank of China intends to do with the digital yuan.
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HKMA senior executive president Edmond Lau added:

 “The prospect of issuing a central bank digital currency for retail purpose in Hong Kong is limited, as we have so many retail payment services (ranging from) credit card, debit card, and (others).”

He continued that the HKMA and the Bank of Thailand will announce further details on their proof-of-concept study in the Q1 of 2020.