By Anjali Kochhar
Emirates NBD, Dubai’s largest bank, has announced a groundbreaking pilot project in collaboration with India’s ICICI Bank to explore blockchain technology for global remittances and trade finance. This initiative marks a significant step as it represents the first major blockchain project between banks from the Middle East and India.
The pilot project aims to demonstrate how blockchain technology can revolutionise banking operations by substantially reducing transaction costs and processing times. According to Emirates NBD, the use of blockchain has enabled the near real-time transfer of invoices and purchase orders for trade finance transactions. This advancement showcases the potential of blockchain to streamline financial processes and enhance efficiency.
Blockchain technology, originally developed for digital currencies like Bitcoin, functions as a secure electronic transaction-processing and record-keeping system. It allows all participating parties to track information through a secure and transparent network, eliminating the need for third-party verification. This can lead to more secure and faster financial transactions.
In addition to the Emirates NBD and ICICI Bank collaboration, several other banks are also exploring blockchain technology. For instance, Microsoft recently partnered with Bank of America Merrill Lynch to develop and test blockchain solutions. This collaboration aims to create a blockchain-based framework that could eventually be commercialised and sold to other businesses.
Emirates NBD and ICICI Bank are working with Infosys Finacle, a leading provider of banking software solutions, to trial blockchain technology across various banking and payment services. The partnership highlights the growing interest in blockchain within the banking sector and its potential to transform traditional financial operations.
The initiative by Emirates NBD and ICICI Bank is expected to set a precedent for future collaborations between banks in different regions, paving the way for broader adoption of blockchain technology in the financial industry.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
