SWIFT India to Pilot Indian Blockchain Revolution

SWIFT India in its November 20 Press release announced its partnership with Fintech firm MonetaGO. The organization aims to start the distributed ledger network within the financial realm to improve its efficiency to a certain degree.

SWIFT India is a joint venture of many Indian and overseas banks including the HDFC and Bank of India. SWIFT India provides messaging services to banks and corporates. It was established by  SWIFT SCRL (Society for Worldwide Interbank Financial Telecommunication). SWIFT plans to integrate MonteGo’s Financial services network into its messaging system.

SWIFT CEO Kiran Shetty says that the decentralized system, when applied to the current financial infrastructure, will result in the digitization of trade processes. MonteGO, its partner will help the firm in fraud mitigation solutions and check the authenticity of E-Bills to avoid any double financing. The proposed e-Bill will be generated for the movement of goods with values in access to 50,000 INR or $700.

Jesse Chenard, CEO of MonetaGo explains,

“Given India’s focus on a digital infrastructure which is supported by both policy and technological innovation, it makes sense that large institutional players are interested in these products and initiatives,”

India has had a close eye on the cryptocurrency market and implementation of Blockchain for quite some time now. India’s Central Bank in August created a separate unit for research on implementation of Decentralized ledger Network, what can be adopted and what can’t. The vested interest in the blockchain technology and cryptocurrency by the financial department shows the potential that the technology holds.

In September, the Union cabinet of India approved of a Memorandum of Understanding (MOU) for research into DLT and what potential does it hold to for implementation in the current Financial system. The study was a collaboration among significant financial institution in the country. The steps have been quite considerate to make sure we can adapt to the changes in the financial system regarding technology.

Final Thoughts:

Looking at the irregularities and cases of frauds in the current banking system, India as a country needs Blockchain based Distributed Ledger Network more than anyone else. India as a country holds great potential to become a Power Economy, but regular cases of frauds have crippled the economy for many many years now. So, top financial institutions like SWIFT need to take action swiftly to make the Financial system robust.