Blockchain has continued to gain popularity as some countries are pushing for the adoption of the technology and now Bangladesh has officially joined this league of countries.
According to Newage on August 15, Standard Chartered Bank has successfully executed Bangladesh’s first ever blockchain based trade transaction.
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Standard Chartered Bank used blockchain technology in issuing a Letter of Credit for readymade garment exporter Viyellatex Ltd on the Contour blockchain network.
Standard Chartered Bank acted as both the issuing bank for the applicant and advising bank for the beneficiary of the Letter of Credit.
This entire transaction was completed digitally through Contour’s network without need for paperwork.
Naser Ezaz Bijoy, Standard Chartered Bank, Bangladesh CEO said:
We are extremely proud to introduce blockchain technology in Bangladesh for trade transactions. It has been a privilege to partner with Viyellatex Group to initiate the first Blockchain enabled Letter of Credit in the country. We are very excited to offer our clients improved speed and reduced risks of settlement offered by platforms such as Contours.
Carl Wegner, CEO of Contour said:
The recent transaction with Viyellatex Ltd serves to prove that a solution is out there and readily available for adoption. It’s also hugely positive to have Standard Chartered introducing this revolutionary technology for trade in Bangladesh and we’re proud to be a part of the first transaction in the country.
KM Rezaul Hasanat, Viyellatex Group chairman and CEO said:
Blockchain technology will certainly increase trading efficiency and reduce turnaround time of the LC process. Hence, we are very happy and proud to collaborate with Standard Chartered Bank and become a part of the first trade transaction in Bangladesh using the revolutionary blockchain technology.
Contour provides a distributed trade network enabling an enhanced degree of collaboration across the main elements of trade with all participants leveraging the network to create and renew trade data in real-time. Built on R3’s Corda blockchain, Contour improves data transparency, removes administration costs and reduces friction in global trade: all of this leading to an overall increase in efficiency and reduction in costs for all parties.