CTBC Bank and Chimei Corporation use blockchain completed the world’s first letter of credit transaction across Europe and Asia
【Published by: Economy Daily News | Editor: Chen Yi-Ci | Translator: Statecraft 】
CTBC Bank announced on October 22nd that it will cooperate with Chimei Corporation to complete Taiwan’s first real trading trial in the world’s largest blockchain credit platform. This is also the world’s first blockchain letter of credit transactions across Europe and Asia.
CTBC Bank pointed out that if there is no error in the transaction of the letter of credit, the delivery of the entity documents takes about five days on average. Through blockchain technology, all the digits are digitized, and the operation time is shortened from five days to one day and greatly improves the security of the transaction..
In addition to the rapid and safe improvement, for the importer, it can also save the warehouse cost of goods when the goods arrive first than entity documents, which is beneficial to improve production efficiency and quickly grab the market.
CTBC Bank explained that importers must present a bill of lading issued by the shipping company or airline to receive the goods. However, when the goods are exported, the shipping company or airline will hand over the bill of lading to the exporter, and then the exporter will open the bank through the bank. The line is transferred to the importer.
The importer has to pay the money first to get the bill of lading, so there may be cases where the goods arrive first then the documents. At this time, the goods must first be stored in the port or airport and pay derived warehouse rental fees.
Layer-level delivery of entity files takes about five days on average. If the file is in error, it will take longer to send the entity files.
Blockchain technology is characterized by multi-party collaboration, clear traceability, and difficulty in tampering. CTBC Bank and Chimei Corporation cooperate in blockchain credit transactions, which are shipped from Chimei Corporation to Polish importers, CTBC Bank as mortgage banks, ING Bank serves as Issuing Bank.
The above transaction was conducted on a blockchain credit platform jointly established by eight banks.The eight banks include CTBC Bank, HSBC Bank, ING Bank, Standard Chartered Group, BNP Paribas, NatWest, SEB, Bangkok Bank.The platform uses the Corda technology of the financial blockchain alliance R3, which is the only blockchain trade financing platform in the world that integrates multiple digital file solutions across Europe and Asia.
Large international companies such as US grain merchant Cargill, Indian cross-industry group Reliance, Australian mining company Rio Tinto, China Shenzhen MTC, etc., have used the platform to conduct trading, and trade in 13 countries.
■ Source: Economy Daily News
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