CBA Makes Cross-border Trading a Reality by Employing IoT and Blockchain Tech
Some of the most exciting news regarding crypto technology comes from Australia, as The Commonwealth Bank conducted a very promising experiment with both Internet of Things (IoT) and blockchain technologies.
The multinational giant, and also one of Australia’s “Big Four” banks, publicly announced the successful completion of a cross-border shipment that used the previously mentioned technologies in order to track goods accurately.
In today’s statement, the bank described how 37,000 pounds (17 tones) of almonds were shipped from Australia to Germany. The goods were tracked via a private, in-house blockchain platform built on top of the Ethereum platform.
Hardware and software support was offered by various partnering companies such as agriculture producer Olam Orchards, port operators such as Patrick Terminals and Port of Melbourne, as well as various logistics carriers.
The blockchain platform and the addition of IoT technologies made it possible for the bank to digitize three main components of the trading process: the data regarding containers, the documents and all the financial transactions.
This provides various parties involved in the process with the possibility of viewing and tracking information about the shipment in real-time (shipment’s status, position, as well as aspects such as humidity and temperature within the containers themselves).
“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,” the bank statement reads.
Emma Roberts, the supply chain manager at Olam Orchards also commented on the importance of this experiment: “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.”
This latest experiment is proof towards CBA’s commitment to offering market-leading and innovative solutions, a mission started in 2016 when the bank completed the first global trade between two independent banks via blockchain and smart contract tech.
Chris Scougall, CBA’s managing director of Industrials and Logistics in Client Coverage neatly captured this idea by stating the following:
“We thrive on the opportunity to work with our customers to help them adapt to changing industry trends, particularly technology. It was key to us that we partner with businesses across the entire supply chain, so we could get a holistic picture of how this technology could impact and improve the efficiency of the transport and logistics industry.”