Blockchain's growing importance has been discussed by industry experts all over the world. This cutting-edge technology has the potential to revolutionize the global trade industry by making trade transactions much more seamless and transparent.
HSBC has thus taken a major step by facilitating the first blockchain-based paperless trade transaction between the UAE and India. Investors and entrepreneurs in both nations should actively learn about the transaction's key aspects to assess how such technology can make their company and personal lives easier in the future.
Paperless Trade Between the UAE and India
In April 2021, HSBC executed a steel export transaction between Tata Steel of India and Universal Tubes of the UAE. The Indian firm exported steel to its UAE counterpart via a paperless transaction that uses a blockchain platform known as Contour. HSBC is a founding shareholder in Contour and has been using its services since December 2020. All transaction-related documentation was exchanged in a fully digitized format, thereby eliminating the need for any paperworks.
Many believe that such blockchain-based platforms will significantly shorten the transaction time for upcoming trade. According to assessments, this efficient method lessens the time from 5-10 days to less than one day, and blockchain-based transactions are highly transparent since the blockchain ledger safely stores all information.
Finally, it should also be noted that this type of transaction includes a paperless letter of credit. This is a vital trading instrument that is widely utilized throughout the world. Making such letters of credit electronic might be a game changer for the trade industry as a whole. This also makes it easier for the involved parties to keep better track of the transaction.
This transaction type has the ability to transform the way trade takes place in the two countries. If more companies choose to implement these types of transactions, the overall efficiency of the trading industry could improve dramatically in the near future.
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