Indian financial services giant Axis Bank has signed a financial contract between two domestic businesses by using a government-backed blockchain platform known as Secure Logistics Document Exchange (SLDE).
SLDE has been developed and release On July 28, 2021, by the Ministry of Commerce and Industry of India as a digital document exchange platform, using a blockchain-based security protocol for data security and authentication.
According to the official announcement, Axis release Letter of credit between Arcelor Mittal Nippon Steel India and Lalit Pipes & Pipes Ltd., a financial contract guaranteeing payment on terms. Through SLDE, the Ministry of India aims to increase transparency in auditing, capital requirements and logistics. Vivek Gupta, President of Wholesale Banking Products at Axis Bank, added:
“This transaction reinforces Axis’ commitment to leading the digitalization of transaction banking.”
The state-backed blockchain platform also includes a Greenhouse Gas (GHG) Emissions Calculator, “allowing for commodity-wise comparisons of GHG emissions and total transportation costs between road and rail, including their environmental costs.”
Despite the lack of discussions and regulations around cryptocurrencies, the central and state governments in India have taken proactive steps to implement blockchain technology in various business and development sectors.
Late last year, the Telangana state government launched a program for early-stage Web 2.0 and Web 3.0 startups and blockchain developers to help build solutions to real-world problems. Speaking to Cointelegraph, Rama Devi Lanka, director of emerging technologies at the Telangana government, highlighted the government’s intention to speed up the implementation of blockchain in various use cases:
“Some of the interesting use cases that the state is already piloting in blockchain include – T-Chits (money in blockchain), supply chain (seed traceability), e-voting (built using blockchain and artificial intelligence) digital voting platforms) and more.”