The main Asian economies, China and Singapore, have created a working group to deepen bilateral cooperation on green and transition financing. The goal is to facilitate greater collaboration between the public and private sectors to achieve a low carbon future in the region.
The Monetary Authority of Singapore (MAS) announced collaboration with the People’s Bank of China (PBC) in establishing the China-Singapore Green Finance Task Force (GFTF). its acronym in English). With the GFTF, the duo intends to jointly develop a set of financial standards, products, technologies and definitions to reduce carbon footprints.
According to Gillian Tan, MAS Deputy Director General and Head of Sustainability, public and private stakeholders from China and Singapore will collaborate “on concrete initiatives that will catalyze capital flows to support a credible and inclusive transition to a low carbon future for our countries and the region”.
For starters, the GFTF will allow MAS and PBC to find common ground for taxonomies and definitions regarding each other’s existing transition activities. The working group will also enable countries to strengthen sustainability bond market connectivity, including two-way access to transition and green bond products.
The GFTF technology initiative will involve the MetaVerse Green Exchange, a licensed Singaporean crypto exchange, and the Beijing Green Exchange, a Beijing municipal government-approved company, to help facilitate the adoption of sustainable finance. The two companies will also be in charge of testing digital green bonds with carbon credits.
It appears that Chinese banks are opening bank accounts for regulated cryptocurrency companies, with several of them acting as payment layers for cryptocurrency platforms.
While China’s state-owned Bank of Communications is in talks to open accounts to regulated companies, ZA Bank, Hong Kong’s largest virtual bank, will act as the settlement bank for cryptocurrencies, according to a Wall Street Journal report.
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