HSBC Bangladesh Bank has made a major blockchain transaction to export oil to Singapore. This is the first time that a letter of credit has been used in Bangladesh to settle an international blockchain transaction of this magnitude.
HSBC Bangladesh uses blockchain for export
As The Daily Star reports , the export of oil was carried out with blockchain technology, in order to save time. Until then, the processing of a letter of credit took 5 to 10 days, this period is now reduced to less than 24 hours . The transaction was made with United Mymensingh Power Ltd, the recipient of these 20,000 tonnes of oil, which is located in Singapore.
For this, HSBC Bangladesh made use of the Contour distributed ledger platform, which uses Corda’s blockchain technology . The CEO of the bank, Md Mahbub ur Rahman, has also confirmed that the latter intends to continue to develop this technology:
“This shows our strong commitment and ability to support cross-border trade for Bangladesh businesses, using cutting edge technology platforms . “
Improve deadlines for letters of credit
Letters of credit for oil imports are particularly time sensitive, which is why the use of blockchain can allow more flexibility for the companies involved . According to HSBC Bangladesh, the effects of using letters of credit with blockchain can be “ huge . “
The choice of Corda is not by chance. The platform has shown its usefulness for the banking sector . Last July, we learned that 85% of Italian banks were using Corda’s blockchain for data exchange.
United Group Director Moinuddin Hasan Rashid confirmed that the blockchain will continue to be used for imports:
„We are very enthusiastic regarding the use of the blockchain technology for our importa t ions. We understand that we are heading into a digital age , and we are ready to scale our efforts to adapt to these changes. „