HSBC Bangladesh, which is the Bangladesh branch of the world-renowned HSBC Bank, has recently carried out a huge transaction to import oil.
First Blockchain-Based Transaction
According to the reports, it is the first-ever transaction processed in Bangladesh that is based on the blockchain network. It was reportedly a letter of credit transaction that was carried out for oil import.
The information shared by HSBC Bangladesh suggests that the transaction was processed using the Contour DLT platform.
Importation of 20,000 Tons of Oil
Using the particular platform, the HSBC Bangladesh branch processed a transaction for 20,000 tons of fuel oil. The payment has already been made for the importation of the fuel oil.
The transaction was carried out between HSBC Bangladesh and United Mymensingh Power. It is the subsidiary of the United Group that is based in Singapore.
MD Mahbub ur Rahman’s Statement
Md Mahbub ur Rahman, the chief executive at HSBC Bangladesh commended the dedication and importance of the recent transaction.
According to the chief executive, by processing a transaction through the blockchain network, HSBC Bangladesh has demonstrated its commitment to technological advancements.
The Bangladeshi bank has played a key role in adopting and advocating the usage of blockchain technology. It is a cutting-edge technology that has been adopted by a major financial institution based in Bangladesh.
Bangladesh Adopts Blockchain Technology
Bangladesh has now become another fast-growing country in the Asian continent. HSBC Bangladesh is playing a major role in the mainstream adoption of blockchain technology in the country.
This way, the country would be able to make cross-border transactions on a very fast scale. This would eventually make a great difference in how things are done in Bangladesh.
The government of Bangladesh may also adopt blockchain technology, officially legalizing the usage of blockchain in the country.
Estimation Shared by SWIFT
SWIFT, a major global payments service has revealed that in the first half of 2020, the LCs opened by Bangladesh for trade were worth over $34 billion.
Under common circumstances and using the usual transaction channels, it would take between 5 and 10 days to process transactions.
With the usage of blockchain technology, the time taken for the same transactions has been reduced tremendously. As confirmed by the United Group, the transaction less than 24 hours to process.
LCs are Processing Quickly
The process of LCs is very important when it comes to placing import orders for fuel oil. If the transaction is delayed by a day or two, it can prove to be quite damaging to the country’s economy.
However, as blockchain technology has reduced the transaction durations to less than 24 hours, the situation has changed entirely regarding LCs.