HSBC Bangladesh Conducts First Blockchain-Based Letter Of Credit Transaction On Contour DLT Platform
HSBC Bangladesh Conducts First Blockchain-Based Letter Of Credit Transaction On Contour DLT Platform
November 5, 2020
HSBC Bangladesh Conducts First Blockchain-Based Letter Of Credit Transaction On Contour DLT Platform
HSBC Bangladesh Conducts First Blockchain-Based Letter Of Credit Transaction On Contour DLT Platform
November 5, 2020

HSBC Bangladesh has conducted the country’s first blockchain-based letter of a credit transaction on the Contour DLT platform.

It has been reported that the transaction was used to settle the importation of 20,000 tonnes of fuel oil from United Group’s Singapore subsidiary United Mymensingh Power.

Md Mahbub ur Rahman, the Chief Executive of HSBC Bangladesh, described the transaction as showcasing the bank’s commitment “to supporting cross-border trade by Bangladeshi businesses using cutting-edge technology platforms.”

He added:

“I believe this will usher in a new era of routing international trade transactions as businesses and governments recognize transparency, security and swiftness in performing tasks using blockchain technology.”

However, SWIFT, the global payments service, estimated that Bangladeshi trades using letters of credit, or LCs, were worth more than $34 billion during the first half of 2020. 

By utilizing blockchain technology, the time taken to process the transaction was reduced from between five and 10 days to less than 24 hours.

ALSO READ :  Bitmain Releases A Batch Of Antminer Products With High Failure Rate

Thus, Moinuddin Hasan Rashi, the Managing Director of United Group, said:  

“Fuel oil LCs are highly time-sensitive where every second counts and we believe this blockchain technology will help to manage time efficiently and also ensure increased efficiency and better cost management.”

Source: Cointelegraph


Disclaimer

Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Colombian Stock Exchange Joins Consorcio Colibrí

Colombian Stock Exchange Joins Consorcio Colibrí

The Colombian Stock Exchange (CSE) has announced that it is joining the Consorcio Colibrí, a private initiative that promotes the adoption of blockchain technology within the finance industry. It has been reported that...

Ishita Bora

Ishita Bora is a Senior Content Creator at Digital Notice Media Labs with an experience of 1 year. She has completed her Master's Degree in Language and Linguistics in 2019 from Gauhati University, India. Her interest lies in blockchain technology and cryptocurrency space, as she loves writing about blockchain and other blockchain-related articles. Currently, she is working on blockchain-based news, reviews, featured articles, and guides.