HSBC engaging Malaysian central bank to embrace blockchain trade finance platforms

Kuala Lumpur, MALAYSIA – Despite a nasty tumble in the markets today, there is some semblance of positive news in a country that has shown to be sluggish in terms of collective acceptance of blockchain technology as compared to its South East Asian neighbours. Nevertheless, as part of ongoing efforts to work with the country’s regulators. HSBC Malaysia has been in talks with Bank Negara Malaysia (BNM), Malaysia’s central bank to lead a blockchain-based finance platform.

This according to the New Straits Times, comes on the heels of HSBC and ING Bank executing a trade for Cargil’s Geneva trading arm involving soybeans from Argentina to Malaysia using the Corda blockchain platform mid last year. And it is one of the shining examples why Ajay Sharma, regional head of global trade and receivables finance, hinted that BNM was receptive towards the use of blockchain technology on a larger scale. He also stated that HSBC Malaysia’s commitment towards driving “digital innovation to meet customers’ changing demands”.

“We urge more banks to embrace the platform, to reap economies of scale. For the efficiency of the new technology, the platform also needs to be a common platform where everyone could participate.”

This alludes to the notion that adoption is key towards seeing blockchain implemented not just in the form of cryptocurrencies but also facilitate traditional sectors in areas such as supply chain management, trade finance and many others with the use of smart contracts.