HSBC heard on Twitter that its blockchain-based trade finance platform was trading. Reactions to the news were quick.
HSBC, one of the largest banks in the world, announced the blockchain-based trade finance platform Contour on social media. HSBC’s use of the definitions of “the world’s first global, decentralized, digital blockchain-based finance platform” for Contour in the announcement drew the reaction of social media.
Here are the reactions from social media users:
“You say decentralized, and the announcement you posted belongs to eight banks for the platform.”
“You are a bank. You are a centralized financial institution managed by a central control system. This doesn’t quite fit the definition of decentralized. ”
“Every single word you said made me laugh. First of all, you are a bank and naturally you have a centralized structure. Also, there are already global, decentralized and digital commerce financing platforms; so you are not the first. ”
What is Contour?
Contour, which announced that it started operating the other day, is a Singapore-based blockchain-based trade finance platform. Contour’s shareholders are Bangkok Bank, BNP Paribas, CTBC, HSBC, ING, Standard Shartered, SEB and Citi, one of the world’s largest commercial banks. Contour provides a blockchain-based network to ensure the secure processing and viewing of information.
Contour first started life in 2017 as a prototype trade finance application called Voltron and focused more on letters of credit. Before starting its market life yesterday, it went through many trials and extensive testing in 17 countries. According to the pilot implementations made on the platform, it was able to reduce the average processing time for letters of credit to 14 hours.
According to the statements of CEO Carl Wegner, the project was implemented at just the right time. According to Wegner, the pandemic and the ensuing curfews revealed the necessity to find more effective methods in the field of trade finance. He claimed that CEO Contour would both reduce contacts during the coronavirus process, streamline processes simply, reduce costs and increase efficiency.