Some of the top financial institutions and corporations in
India are now working on testing the cryptocurrency to pay vendors and move
money between some of the other subsidiaries.
Some of the reports revealed that Reliance Industries, ABG
Shipyard, HDFC Bank and Hindustan Unilever Limited are now some of the
companies which are working one experimenting with cryptocurrency for the
intracompany transactions among each other, to optimize the transactions.
In an interview, Hindustan Unilever Limited revealed that it
is working and building the digitizations, he explains:
“The cryptocurrency
would only be used by the companies and banks internally,” one source told the
publication. “It will mainly be effective as a working capital management tool,
where rather than transferring money, cryptocurrency will be transferred and
accounts shall be reconciled at a later date.”
Some of the other corporate experts revealed that the
payments between the subsidiaries of a single corporate world are large in
volume, and thus produces the inefficiencies and friction for the departments
of the corporate industry.
The head of CFO advisory in the KPMG, Sai Venkateshwaran
revealed in an interview that the businesses are working on to explore the use
of latest blockchain technology in the country.
“Several large
companies are evaluating various use cases of the blockchain, including in
areas such as managing intra-group transactions and as a logical extension,
looking at its use as a group treasury management tool for more efficient cash
and working capital management,” Venkateshwaran said. “Apart from greater
efficiency and accuracy, it has the potential to bring enhanced levels of
transparency for group treasury management and also cost savings.”
Moreover, it is not clear whether these financial
institutions are working on the deployment of cryptocurrency or blockchain or
both.
“There is a tax
angle, and then there is an accounting angle,” the person said. “Those would be
dealt with at a later stage.”