Blockchain aids Vietnamese and Thailand companies to facilitate trading activities
The Asian Development Bank (ADB), with the head office in Philippines, has processed its first letter of credit (LC) transaction by means of the Standard Chartered-backed Contour blockchain network.
This transaction has been a part of ADB’s trade and supply chain program and supposed Standard Chartered and the Bank for Investment and Development of Vietnam.
ADB’s trade settlement has pointed out the first blockchain-based cross-border LC transaction between Vietnam and Thailand as well.
The results of Global Trade Review report showed that the trade supposed a $50,000 plastics shipment sent from Thailand’s SCG Plastics Co Ltd to Vietnam’s Opec Plastics Joint Stock Company.
Despite the fact that ADB did not specifically state how blockchain added to the efficiency of the trade settlement, Steven Beck, the bank’s head of trade and supply chain finance, told that the use of blockchain has helped to make trade more efficient and reduce the risk and the barriers for small and medium-sized businesses for entering developing Asian market.
The COVID-19 lockdown has confirmed the importance of trade digitization, making many major entities dealing with international trade and supply chain to launch blockchain in a bid to digitize operations and go away from paperwork.
The London-based multinational banking company Standard Chartered also conducted the first blockchain-based transaction in Bangaladesh, by presenting this innovation in South Asia.