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Indian Industries embraces blockchain for B2B payments

Pooja
Pooja

It’s not a new fact that India’s economy is barred with official crypto usage. But the business sector in the country is embracing the blockchain for record keeping and B2B operations

Perhaps the decentralized nature of blockchain makes it a more viable option for record-keeping or manage internal operations.

A recent report by Economic Times (ET) shows many corporates and banking companies are exploring digital currency for record keeping or B2B operations. Perhaps the industry is looking for a more reliable option and which will ensure that all financial records, contracts are properly documented.

Specifically, companies like Hindustan Unilever, ABG Shipyard, HDFC Bank, and Reliance Industries are experimenting with decentralized technology. They have initiated pilot tests to know how feasible is this tech for their operations.

As ET report indicates, Unilever spokesperson mentioned that,

The cryptocurrency would only be used by the companies and banks internally. It will mainly be effective as a working capital management tool, where rather than actually transferring money, cryptocurrency will be transferred and accounts shall be reconciled at a later date. 

The key point which industries need to bear in mind is that cryptocurrency ban in the country is not yet lifted up and direct transactions in crypto with consumer market is not allowed.

However, using an internal cryptocurrency to transact within company or among various subsidiaries is feasible option. Also, infrastructure and banking industries often deal with millions of transactions and making use of DLT is proven way to overcome problems with traditional approaches.

On the same lines Sai Venkateshwaran, a Partner and Head of CFO Advisory at KPMG India, stated that

Apart from greater efficiency and accuracy, [blockchain technology] has the potential to bring enhanced levels of transparency for group treasury management and also cost savings.

Despite various challenges, industries are still hoping that indian regulators might eventually be convinced with various benefits of crypto and give green signal for them.

Do you think with the current situation in India crypto will survive? Share your thoughts in the comments section below.

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Pooja

Lead writer at Wolfcone.com and avid reader. My interests lie in everything and anything related to technology. I firmly believe cryptocurrency has the power to revolutionize world economy and blockc