A report published in a leading Indian newspaper says that largest corporations are running trials on blockchain technology for record keeping. The large companies and banks are using this advanced technology in multifarious ways including making payments, reconciling accounts, managing internal funds, and keeping proper records.
Call for Blockchain Adoption Growing Stronger for Payments
Reserve Bank of India has been sort of hostile to cryptocurrencies and cryptocurrency exchanges. They have also recently announced that they are not going to launch their well-awaited Digital Rupee anytime soon. However, certain incidents are accelerating the adoption pace of blockchain technology.
One such major incident is the takeover of IL&FS. Reports say that the concerned takeover was initiated after the IL&FS lacked proper record keeping. In fact, the increasing need for proper documentation of financial records as well as contracts is making more corporate to adopt blockchain technology.
With its incorporation, all the discrepancies related to record-keeping practically gets removed, making the system useful to the large companies and banks that have multi-level data flow.
Which are the Large Corporations that Adopted Blockchain Technology?
Some of the big corporations that adopted blockchain technology include names like –
- Reliance Industries
- HDFC Bank
- ABG Shipyard
- Hindustan Unilever and many more
Currently, many pilot projects are run by using Distributed Ledger Technology (DLT). This technology is run strictly as a record-keeping tool, where the books are balanced either at the end of the year or end of the quarter.
A Partner and Head of CFO Advisory at KPMG India, Sai Venkateshwaran, said:
“Apart from greater efficiency and accuracy, [blockchain technology] has the potential to bring enhanced levels of transparency for group treasury management and also cost savings.”
Reserve Bank of India is still apprehensive about the cryptocurrencies. The banks in India have been asked by the apex bank not to open an account related to the transactions of these digital assets. The rampant cryptocurrency frauds taking place in India have also restricted expansion of the place. The perceived problems related to accounting as well as tax compliance are also enhancing the regulatory concern related to the crypto space. The Indian economy is projected to surpass the US economy by 2030. The largest corporations believe that the regulators will be on their side in the coming years as the economy races towards the top position along with the Chinese economy.
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