Ten private sector banks, four public sector banks, and a foreign bank have forged the Indian Banks’ Blockchain Infrastructure Company (IBBIC). The company’s new system will verify data for invoices on goods and services tax, eliminate paperwork and reduce transaction times, as the press release says.
While experimentation and execution of LCs on blockchain rails has been done before, IBBIC’s move marks the first attempt for domestic trade finance. Domestic LCs act as sureties for the seller that goods or services will be paid for when they eventually arrive.
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