On 11 November 2016, the ‘Hong Kong Applied Science and Technology Research Institute’s White Paper on Distributed Ledger Technology’ (the White Paper) was commissioned by the FFO of the Hong Kong Monetary Authority (HKMA) to investigate the potential applications of distributed ledger technology (DLT).
Although fintech is already widely used in areas such as internet banking and mobile payment applications, it has a much broader potential application. DLT is an example of this. The FFO aims to use the White Paper to provide the fintech community with a comprehensive study of its key features, benefits and risks.
The key objectives of the White Paper are: (i) to examine DLT (including its risks, potential, and the relevant regulatory framework and implications); and (ii) to identify the possible applications of DLT to banking services. The White Paper also includes the initial findings of proof-of-concept work carried out on DLT in mortgage loan applications, trade finance and digital identity management.
A second report is set to follow later in 2017, which will deliver more detailed findings from the FFO’s proof-of-concept work and discuss whether that work can be put into practice. It will also consider what the regulatory implications of DLT might be and what general control principles would be suitable for DLT in the banking and payment industry.
Please click here to read the White Paper.