In last week’s press conference, senior innovation manager Joshua Kroeker revealed that banks used the technology to “have enough confidence to conduct on-site transactions” and they have been solving various initial problems for the past two years.
HSBC participated in one of the early trade finance blockchain projects. At that time, it cooperated with Bank of America Merrill Lynch and Singapore Information and Communications Development Authority (IDA) on Proof of Concept (PoC) to reflect the LC distribution. Bookkeeping Technology (DLT).
The bank has been continuing this project since it was announced in August 2016. It seems that this may be one of the projects that entered the pilot phase. This period of time has been spent on improving the robustness and security of the solution until the bank reaches the customer. Satisfied.
'Since the 2016 PoC, we are at a turning point that allows customers to participate in real-time transactions in the coming weeks and months. Technology has come a long way, and we are more satisfied with its security and scalability.' He told GTR and other media.
'This is the stage we are in now. We want to let the participating customers do the 'pilots'. The next stage is to let it survive in the production environment, but there is still more work to be done on the application side. , But more work on the network,' he added.
Kroeker could not reveal more details about the specific pilots started, but stated that documentary credits will also be one of the primary areas of concern. The bank will test LC this year on R3's Corda platform.
In the past two years, I spent a lot of time talking to many of the largest trading customers. In most cases, they streamlined and digitized their business as much as possible, but the product that brought them the most trouble was documentary credit. This product is one of the products we first tried. It will be exciting, 'he added.
However, it is worth noting that, at least for HSBC, this technology has a long way to go for commercial use. In addition to developing platforms and solutions, it is also necessary to establish a network to complete all on the blockchain. Trading, which means to join all other banks, regulatory agencies, customs and all parts of the trade cycle.
Kroeker said: 'We have seen development throughout the year, so that by 2019, we should be able to have banks, businesses and other networks at the same time, and applications can be used in a wider range.
At the same time, the bank hopes that its risk-taking actions in the blockchain can well meet the needs of the 'digital natives' in the ASEAN region. ASEAN plans to become one of the global digital service growth centers in the coming years.
A press conference was held to discuss the digital agenda in the region. The region is forming an online battlefield in the coming years.
By 2020, there will be 420 million Internet users in ASEAN, and the Internet economy will reach 20 billion U.S. dollars by 2025. E-commerce will reach 88 billion U.S. dollars in the same year. There is a feeling that 70% of the 630 million population of the ASEAN countries are aged Under the age of 40, banks and companies with strong networks and digital presence can enter a huge growth market.
'The OECD report said that document costs and loan management procedures may increase costs by as much as 23%. Ajay Sharma, regional director of HSBC Global Trade and Accounts Receivable Finance, said: 'The marginal process is inefficient and costs increase by 5%.' In ASEAN, they are removing obstacles, simplifying and automating customized procedures, and there are many things being done,' he added.