Today 14th May, HBSC makes its first trade blockchain transaction. This is a major step taken by banking sector to try the blockchain technology.
According to the FT, The transaction was for Cargill a food and agricultural group. This was done by Dutch bank ING together with HSBC and it was successfully completed.
The Blockchain Technology Saves Time and Use of Paper
The blockchain technology will help reduce the risk of frauds in the banking industry. And it also reduces less use of paper for documentation also gains the processing speed.
“The next stage is actually encouraging as many participants as possible to sign up to the utility,” said Vivek Ramachandran, head of innovation and growth for commercial banking at HSBC
In HSBC the finance floors are filled with bundles of paper documentation for trade. blockchain will help to reduce this and will make less use of paper.
The adoption is taking place from tradition ways to blockchain technology. Putting away the paperwork and using blockchain could save time to export goods up to 44 percent. Also, can cut costs up to 31 percent said HSBC