Commonwealth Bank of Australia Announces Success in Global Trade Blockchain Trial
The CBA (Commonwealth Bank of Australia), one of the “Big Four” banks in the country, has announced the successful completion of a cross-border shipment transaction that used blockchain to streamline the shipping logistics and track goods.
The multinational bank said in its statement on Monday that around 37,000 pounds of almonds were shipped to Germany from Australia, and the shipment was tracked via a blockchain network developed privately by the CBA “on top of the ethereum network”.
Participating nodes of the privately developed system included some famous parties along the supply chain, such as the Port of Melbourne and port operator Patrick Terminals, as well as agriculture producer Olam Orchards.
The bank said the system based on blockchain stores all the data of financial transactions, containers and documents on a decentralized distributed network. Owing to this, different parents can view and track details related to the shipment concurrently, in real-time – information concerning the shipment’s current status and the temperature of the containers.
The CBA said in the release:
“This level of data provided partners in the supply chain with a greater level of transparency and efficiency regarding the location, condition and authentication of the goods being transported,”
Emma Roberts, Olam Orchards’ supply chain manager, commented in the release:
“Trade inefficiency can be extremely detrimental to our business. It is vital that as an industry, we look at emerging technology for ways to enhance the supply chain to develop a more transparent and efficient platform.”
The announcement follows the multinational bank’s previous work to test another blockchain-based system to track cross-border cotton shipments in real time, through its partnership with Well Fargo. In 2017, the banking giant also unveiled its plan to issue a bond over a blockchain-based system.
All efforts made by the bank to adopt the distributed ledger technology are part of its wider push towards technological advancements. Last year, the bank revealed it aimed to spend around $1Bln on technology advancement in 2017.
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