Standard Chartered has successfully carried out the first blockchain transaction in Bangladesh with a letter of credit in the Contour blockchain. The bank acted as an advisory and also issuing bank for the letter of credit for the textile export company Viyellatex. Blockchain payments are paperless, save time and are very efficient. Traditional transactions can result in long waiting times, with service and processing fees being charged by intermediaries. Often, when money is received, there is no guarantee that the recipient will receive the full amount due to different exchange rates. When the same transactions are automated via blockchain, intermediaries do not charge any fees. In addition, the time it takes to process the transaction is much shorter. By eliminating unnecessary fees, Viyellatex expects greater efficiency and cost reductions.
Become the norm
Many companies and countries are beginning to realize how much blockchain can do to facilitate transactions. Because the technology is ideal for any cross-border transaction.This poses a threat to financial institutions that do not adopt the technology as their business model relies on acting as an intermediary for global clearing operations.Many banks have started adopting blockchain payment solutions. Banco Santander recently launched the One Pay FX payment app in collaboration with Ripple.One Pay FX Chief Technology Officer Ed Metzger shared the following:
“You have so much confidence in the low cost, same-day process that sending money overseas is no longer a big deal.”