As per an interview published by French business and tech journal L’Usine Digitale, on the 4th of February, an HSBC executive claimed that transparency and instantaneity are the main advantages of blockchain technology.
Béatrice Collot, Head of Global Trade and Receivable Finance at multinational banking giant HSBC, is of the opinion that the role of emerging technologies, such as artificial intelligence (AI), the Internet of Things (IoT) and blockchain, in trade finance is going to be tremendous. She made her comments when asked about the upcoming IN Banque conference in Paris this week.
According to her, blockchain can very well transform global trade finance by bringing together all stakeholders and enabling the sharing of information in a more transparent way.
Collot specifically stated that blockchain has the potential to converge the two main ecosystems involved in trade finance — the financial ecosystem, which consists of banks and suppliers, and the supply chain ecosystem. Along with this, the technology can provide a unified platform for multiple stakeholders, which may prove to be helpful in avoiding difficulties that slow down operations, Collot explained.
“Thus, transparency and instantaneity are the true strengths of the blockchain, and should generate not only significant time savings and increased security, but also significant [financial] savings.”
However, she also emphasized the fact that the benefits of blockchain tech should be still be considered potential as according to her, “we are not quite there yet.” She also said that in order to be successful, the tech “must be widely adopted and interoperable.”
She also noted the three major blockchain platforms currently in use, blockchain consortium R3’s Corda, Ethereum (ETH) and IBM-supported Hyperledger and while listing blockchain platforms, the exec further noted “[b]ut, in reality, there are hundreds. Maybe in ten years, there will be only one.”