The State Bank of India is preparing to take hold of the technology used in blockchain solutions. There are many financial processes they would like to trial before embracing it fully.
A new system that the State Bank intends to use, known as the Know Your Customer (KYC) system could be managed utilizing the blockchain. At least the plan is to use it as a trial.
The interesting point of this is that banks have billions in assets as it stands. When a bank is seeking more options because of the level of assets they have, this is good news.
This draws more attention to the blockchain and how it works. Banks that are seeking to try using blockchain solutions will lend more credence to the use of cryptocurrency and the technology.
Today, I’ll share the details of this technology and how the bank is going to use them for India to prepare the way for the future.
How the State Bank of India is Putting Blockchain Solutions on Trial
A government-owned bank will take a lot of flak for digging their hands in the cryptocurrency pot. This is because this market is decentralized.
The appeal this marketplace has is strong, giving people the freedom to choose their how, when, why, and their where too.
This is because cryptocurrency creates a situation in which there are no boundaries. How will the State Bank of India utilize blockchain solutions?
- SBI created Bankchain. Bankchain is not a bank, but rather an organization or consortium of banks that will gather and exchange ideas about how this can change the game for India and all financial institutions that are a part of India. Those who are participating are most likely going to implement these ideas down the road. This includes for those banks involved in retail banking and financing services.
- Using blockchain alongside technology already launched. Technology is great, but everyone is always seeking ways to make it more secure. When utilizing the blockchain technology those tools that are already in use may become more secure. This is where the technology behind the private keys using in cryptocurrency are worth investigating. It is important to take a look at this from all angles. Every country has faced their own security issues.
- Viewing this as a technology adviser. The blockchain technology is amazing. This is where banks will become more reliant on this technology to aid in keeping accounts secure. A partnership with Intel means that technology is at the forefront of everything SBI is doing. Trusting this technology as a trusted adviser is the new thing!
- It will deploy with Hyperledger Sawtooth. Okay, so this is what aids in the deployment of the intel. Help with deployment means the world for the bank, and this software is open-source and secures the privacy of the blockchain. This has also employed Primechain, India’s first blockchain startup.
There are numerous reasons that financial institutions look for their options in regards to using blockchain technology. Cryptocurrency is no doubt the revolutionary way to do business. India is now moving forward and embracing technology with the help of blockchain solutions.