Recently, the SBI (State Bank of India) was in news when it, along with the other important financial institutions in India like the RBI, decided to clampdown on cryptocurrency exchange owing to the insecurities attached with such transactions.
Now, SBI is in the crypto news again. SBI is partnering up with about 30 banks to establish a common blockchain based platform that will enable data-driven price discovery. According to Sudin Baraokar, Head Innovation, SBI, State Bank of India will soon have a blockchain-based exchange for bad debts along with other banks, asset reconstruction companies and investors on the same infrastructure.
SBI, which is India’s largest public sector bank, also ranks among top 40 internationally, will now implement four or five blockchain-ready business solutions. The Indian banks which are under a huge burden with an estimated $210 billion of non-performing assets (NPAs), of which over $30 billion are with SBI alone, are seeking blockchain-based solutions where the exchange will provide a common platform that will enable data-driven price discovery. Similarly, trade finance and loan exchanges are also planned, he said. Thus, building a blockchain technology for certain purposes looks like a massive step for the economy.
Interestingly, SBI was one of the early adopters of IT and has been providing unique banking solutions going as far as over two billion transactions a day, about 23,000 a second, with over 550 million accounts.
In a seminar dedicated to emerging trends in financial services organized by business and management consulting firm EY, he said
“a unified infrastructure with all related participants on board will help avoid debacles like the recent bank guarantee/LoU-related frauds. Everybody will know the origin of a transactions and the entity responsible for its final settlement”
With SBI taking progressive steps towards blockchain technology, it looks like it is going to be sole platform for transactions in the coming times, all around the world.
Also Read: “https://kryptomoney.com/how-blockchain-technology-can-disrupt-banking/”>How Blockchain Technology Can Disrupt Banking Industry
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