HSBC executes 1st cross-border blockchain LC in Bangladesh

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The LC processing time was reduced from the standard 5-10 days to under 24 hoursThis was the to begin such a transaction executed from Bangladesh, which was completed using the Contour platform and the LC processing time was reduced from the typical 5-10 days to under a day, said a news release.

Md Mahbub ur Rahman, ceo, HSBC Bangladesh said: “I am very pleased that HSBC has pioneered Bangladesh’s first-ever cross-border Blockchain LC transaction. This showcases our strong commitment and capability to support cross-border trade by Bangladeshi businesses using cutting-edge technology platforms. I really believe this will usher in a new era of routing international trade transactions as businesses and governments recognise the transparency, security and swiftness in performing tasks using Blockchain technology.”

This marks a significant step for Bangladeshi companies in the digitization of trade.

It makes conducting business simpler and faster by reducing transaction times and boosts working capital efficiency, something that’s especially attractive to local companies navigating through the existing monetary challenges, the release added.

Moinuddin Hasan Rashid, group chairman and managing director of United Group, said: “We are very enthusiastic over the utilization of Blockchain technology for our imports. We understand that we are headed towards an electronic era and we are ready to evolve inside our effort to adjust to the changes. Fuel Oil LCs are highly time sensitive where every second counts and we believe this Blockchain technology will help to manage time efficiently and in addition ensure increased efficiency and better cost management.”

For the first half of 2020, Bangladesh’s trade under LCs was overUS$34 billion according to SWIFT.

HSBC has effectively pioneered Blockchain platform in many a country including but not limited to India, Dubai, Malaysia, Oman, Saudi Arabia, Singapore, South Korea and Vietnam.

The Contour platform is made using R3’s CordaBlockchain technology.

It links together banks and corporates on a decentralized trade finance network.

The Hongkong and Shanghai Banking Corporation (HSBC) Bangladesh recently completed the first-ever cross-border blockchain letter-of-credit (LC) transaction in Bangladesh, relating to the import of 20,000 a great deal of fuel by United Mymensingh Power Limited, Bangladesh from Singapore.

Source: https://www.dhakatribune.com

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