Large Corporations In India Explore Blockchain Technology For B2B Payments

February 16, 2019

Some of the biggest conglomerates in India are looking to blockchain technology to carry out B2B payments and to help with accurate and reliable recordkeeping.

Many business and banks in India are receptive to cryptocurrency, despite the myriad and confusing restrictions meted out by regulators. These corporations see cryptocurrency and blockchain technology as a more effective way to audit accounts, make payments, manage funds, and keep accurate records.

Leading Firms In India Looking To Start Blockchain Based Payments

Cryptocurrencies seem to still have a future in India, regardless of the hostile stance of the Reserve Bank of India (RBI) on cryptocurrencies. With the revelation that the IL&FS takeover was caused mainly by poor recordkeeping, other large businesses in India are more than willing to explore other, more reliable means of recordkeeping. The use of blockchain technology for recordkeeping seems to be a welcome idea, because it practically eliminates possibilities for discrepancies. The trustless feature of blockchain alone makes it very useful for large organizations with multi-level data flow. Although still in the testing phase, sources say the results of early blockchain-based bookkeeping trials are promising. If successful, the corporations involved will need to scale up the process to cover wider areas.

Hindustan Unilever is one of the larger corporations in India willing to explore blockchain technology for B2B payments. Other corporations include ABG Shipyard, HDFC Bank, and Reliance Industries.

Presently, several pilot projects using blockchain technology as a recordkeeping tool are underway. Despite the fact that no timeline has been given for the projects’ completion, stakeholders are hopeful that blockchain technology will have a big future in India.

Sai Venkateshwaran, Partner and Head of CFO Advisory at KPMG India, said while speaking with the India Times that beyond recordkeeping, blockchain has the potential to bring transparency to group treasury management, as well as cost savings.

Crypto Here To Stay In India

Though restrictions by the RBI may be challenging to the cryptocurrency industry in India, it is believed that these restrictions can be bypassed if transactions are kept strictly in-house. Experts believe that the problem with cryptocurrency regulation in India has mainly to do taxation and accounting compliance, coupled with the high levels of crypto fraud. Regardless of these shortcomings, stakeholders are convinced that it is only a matter of time before they get regulators on their side.

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