Post the ban on cryptocurrencies by the Reserve Bank of India(RBI), widespread adoption of blockchain technology in the mainstream of India has been taking place. Having global players like Walmart and JP Morgan being supportive of the technology, soon blockchain will see its role in the Indian economy becoming more and more mainstream moving forward.
The retail giant Walmart is set to launch its blockchain based pilot project to back its food safety initiative which will ensure an end-to-end traceability of the shrimp that it sources from Andhra Pradesh. These shrimp shipments are sourced for Walmart group’s warehouse retail outlets Sam’s Club.
Walmart, the US-based retailer has been operating alongside IBM to equip a blockchain-based supply chain mechanism with suppliers uploading data at each transaction point on the blockchain network, which would aid the product to be traceable and track a faulty lot of products back to its source.
As per those in the know, a node on the blockchain will be used to represent the entity which handled and processed the food products before they reached the retail outlets. The retailers will also be represented, making the supply process transparent and improving the traceability of goods exponentially.
The company will soon be working with an Andhra Pradesh-based seafood processor company Sandhya Aqua and its US-based supplier Stanley Pearlman Enterprises to enable IBM Food Trust’s blockchain solution in shrimp exports.
This flagship project in Andhra would be unique, first of its kind in India and would increase the seafood exports from this region. The reason being that the trust of the customer’s in the Indian food supplies rises because of the improved traceability.
The multinational investment bank JP Morgan has now teamed up with 7 other Indian commercial banks and will take them on the team with them to work on its blockchain platform. The 7 banks which include banks like ICICI Bank, Axis Bank, Federal Bank of India, Yes Bank will be joining JP Morgan’s blockchain Interbank Information Network (IIN) which highly improves the movement or the flow of funds and also cross border payments.
IIN may even use JP morgan’s native cryptocurrency , called JPM coin, for the movement of funds effectively by exchanging and verifying real-time transactional data.
This decision to team up with other banks on blockchain technology will surely help with the challenges faced by the banks in cross-border payments related to friction points caused by multiple hops through the payment chain when further information is required.
The banking, financial services and insurance (BFSI) sector are leading the adoption of Blockchain Technology in India and are taking up around 60% of the blockchain implementation in the country as per a report by NASSCOM.
Speaking to ET, Madhav Kalyan, CEO, JPMorgan Chase Bank, India said that the move will “address the challenges banks face in cross-border payments pertaining to friction points caused by multiple hops through the payment chain when further information is required.”