Spanish banking group Banco Bilbao Vizcaya Argentaria (BBVA) announced on Tuesday that it will be joining forces with Blockchain company Waves. Why? Both parties want to develop a distributed ledger technology (DLT) platform that is able to process and handle shipping document submissions.
The technology has already commenced the testing stages, and results showed the system is capable of slashing the processing and handling time to two and a half hours. For perspective, the original time was 7-10 days.
The first test of the system was executed on a shipment of tuna, which went all the way to Barcelona, Spain from Mexico. Usually, this sort of purchase requires using a letter of credit, but thanks to the fixed nature of Blockchain technology, the company was capable of verifying and fully processing the letter of credit digitally, thanks to the power of Blockchain.
Here’s what Daniel Berenguer, Head of Digital Trade Finance in Client Solutions had to say:
“The operation was registered and securely validated at the same time for all parties, thanks to the distributed ledgers and the immutability of Blockchain.”
Many speculate this technology will be used in other logistics arenas where it is essential for validation at a fast speed.