SBI To Use Blockchain For Smart Contracts
India’s largest bank, State Bank of India (SBI) will launch beta versions of blockchain-enabled smart contracts by next month which will be followed by Blockchain-enabled Know Your Customer (KYC), according to an ET report.
These applications are part of Bankchain, a group of 27 banks, which have teamed up to build blockchain solutions for banking.
“By next month, we should have two beta production solutions ready for use by the 27 banks. We will also invite further participation. The beta production that will be ready are smart contracts and second is KYC,” Et quoted Sudin Baraokar, head of innovation, SBI as saying.
SBI is a founding member of BankChain, which now has 22 Indian banks and five Middle East-based banks.
“BankChain is a big move. It is getting all banks together and collaborating. It is also de-risking our investment in emerging tech, so that all banks can come and invest at once… we can also share knowledge and reduce the cost. We can also use each other’s technical teams to take this forward. We focused on solutions that the bank does not have… things like smart contracts, which is not regulatory heavy. We focused on those solutions,” said Baraokar.
Smart contracts are which deploys blockchain technology, a distributed and decentralized ledger, to maintain contracts between groups. The code and agreement are public and that is why can be traced and is also irreversible and thus do not require any enforcement agency.
“Smart contracts can be used for simple things like non-disclosure agreement… rather than signing forms. A lot of internal processes can be contracted. We do a lot of IT procurement, a lot of it can be implemented using blockchain,” said Baraokar.
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