Blockchain technology has been promising speedy solutions to many different financial and business processes. However, apart from cryptocurrencies, which is a popular application of the Blockchain technology, we haven’t seen much use of blockchain in business setups.
In a welcome and interesting move, big traditional banks in India are coming together to make use of the revolutionary blockchain technology to speed up their rather lethargic processing of Letters of Credit (LCs). 15 banks including, HDFC, HSBC, Canara bank and others have come together to form a company, Indian Banks’ Blockchain Infrastructure Company Private Limited (IBBIC).
The task of this company will be to help the banks speed up their financial processes by leveraging the latest applications of the blockchain technology. Indian banks also plan to eliminate a lot of paperwork and cumbersome processes by adopting rather advanced technologies.
While India is still sitting on the fence, unable to decide whether they should be regulating the altcoin market or not, the government’s stand about the alternative uses of blockchain technology has been clear. They do support using the technology to devise better and more effective solutions. Certain state governments in India have also funded projects that aim to explore the possibilities within the blockchain to develop novel solutions for businesses.
All-in-all, the top banking institutions coming together to leverage blockchain technology is a remarkable advancement.