The HSBC Bank announced the first successful letter of credit transaction in the Yuan, setting the next milestone. The use of Distributed Ledger technology can keep a Multi-billion-Potential-ready at the same time ensures the removal of bureaucratic hurdles and strengthens the protection of the environment.From Stefan Schäfges
4. September 2019BTC$10.395,17 -2.58%part Facebook Twitter LinkedIn xing mail
In a press release from the 2. September, Europe's largest Bank stated that the first letter of Credit was settled transaction in Yuan on Blockchain-based successfully.
In the case of a letter of credit is a payment promise by an importer's Bank to the exporter of the goods or service.HSBC: The removal of bureaucratic hurdles and environmental protection
In the case of letter of credit transactions are transactions with a high bureaucratic and paper-based expenses. To make the processes more streamlined and resource-saving, the HSBC, like other of their competitors on the Distributed Ledger technology.
The first transaction in Yuan on the Voltron-Trade Finance platform thus represents a milestone. The exchange of electronic documents was carried out within 24 hours. Usual five to ten days for such transactions. If the transaction is an export delivery of the electronics manufacturer's MTC Electronics from Hong Kong to the parent company Shenzhen MTC to China. So far, transactions on Voltron, however, individual cases are. Ajay Sharma, the regional Director in the Asia-Pacific region for the global trade and receivables Finance of HSBC, said:
We hope to know by the end of the year, maybe in the first quarter of next year, what Voltron is the cost. At this point, many of the banks that are currently on the edge will be able to make a decision.
Also Ajay Sharma:
We added hope, of course, that through this technology, the unit cost for a transaction decline, coupled with other advantages, such as speed.
After the first commercial trade Finance transaction with the HSBC in the year 2018, the settlement in Yuan is now another successful milestone. HSBC sees this huge potential, alone, to and from China to 2018 letters of credit to the value of 750 billion US dollars were spent in the year.
The Open-Source Blockchain platform R3 Corda launched Voltron, together with eight banks (HSBC, Bangkok Bank, BNP Paribas, CTBC Holding, ING, NatWest, SEB and Standard Chartered) in October 2018. The goal is the digitisation of trade Finance documents and the Gain of new partners.
in February, BTC had reported the ECHO on the HSBC. Because the Bank was able to save through the use of Distributed Ledger technology in the year 2018, approximately a quarter of the administrative cost in foreign exchange trading.