Hong Kong is one of the biggest financial centres in the world. Even though the region is not as popular as London, the country has built up its reputation in the financial sector. It is not entirely surprising they are among the first countries to look at using blockchain technology in the future. In doing so, they will join New York, London, and Singapore.

Hong Kong Keeps A Close Eye on Blockchain Technology

Interestingly enough, the above statement was made by Marley Gray, Director business development and strategy at Microsoft. The technology giant has shown a keen interest in blockchain over the past few months. Microsoft even offers blockchain-as-a-service through its Azure platform.

According to Gray, Hong Kong will be one of the so-called “blockchain hotbeds” of the financial sector. Innovation in the world of distributed ledgers has to start somewhere, and these four cities seem to be prominent places embracing the future. Gray expects future blockchain innovation will come forth out of these four regions in the coming years.

This news comes on the heels of the World Economic Forum stating four in five banks will have a blockchain project by 2017. While there has been a lot of money invested in blockchain concepts already, funding alone is not enough to stimulate innovation. Developers and education are direly needed to advance this technology, both within and beyond the financial sector.

Hong Kong is already exploring the blockchain and its role in the city’s financial institutions moving forward. The technology can also be adapted to combat money laundering and improve corporate action processing. Moreover, it can remove the need for middleman from any question, being it financial or otherwise.

Exploring the option to reduce fraud and having records which are immutable are the two primary selling points for blockchain technology. Hong Kong is best known for its active trade finance ecosystem, and the technology could make a significant impact in that department.

Source: SCMP

Header image courtesy of Shutterstock

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