Cooperation to remove blockchain difficulties in finance - banking

 Blockchain Association and Vietnam Banks Association agreed to implement activities to remove difficulties when applying blockchain in the financial sector, on October 26.

o remove obstacles in blockchain application, the Vietnam Banks Association signed a cooperation agreement with the Vietnam Blockchain Association within the framework of the seminar "Opportunities and challenges of Blockchain application into operation in the financial industry" taking place. at the State Bank Hall on October 26.

Mr. Nguyen Quoc Hung - General Secretary of the Vietnam Bankers Association said that the two sides need to soon implement the commitments to organize seminars, seminars, exchange experiences, and coordinate with schools such as: Banking University of Ho Chi Minh City aims to develop a training program on blockchain to prepare human resources for the future.

Blockchain Association and Vietnam Banks Association cooperate to develop technology in the field of finance and banking. Photo: VBA
Blockchain Association and Vietnam Banks Association cooperate to develop technology in the field of finance and banking. Photo: VBA

Mr. Phan Duc Trung - Standing Vice Chairman of Vietnam Blockchain Association said that this seminar is the starting point to see the positive and negative sides of blockchain so that the units, policy makers, developers The application can bring the practical values ​​of technology to life and jointly solve the direct problems of businesses.

Within the framework of the conference, both associations agreed on the goals of extending research and consulting activities on blockchain applications in the financial industry and contributing to propagating and promoting correct information about this technology. . At the same time, the two associations will consult together to complete the legal policy framework for the technology sector in Vietnam; expanding relationships with blockchain technology organizations and communities around the world; sharing experiences and resources to research and develop human resources for the digital economy.

Representatives of major banks in Vietnam such as HSBC, Vietcombank, TPBank also had discussions around blockchain application in the banking and finance industry at the conference. The majority of banks agree that blockchain is the future technology, helping a lot for bank operations.

For example, HSBC said that it has applied Letter of credit (L/C) since 2019. It takes 5-year time for a set of L/C documents to be successfully processed according to the traditional model. 10 days, but when blockchain application takes only one day. Since then, the bank has increased labor productivity and reduced paperwork processing time. HSBC is still in the process of commercializing this product.

HSBC representative shares blockchain application experience. Photo: VBA
HSBC representative shares blockchain application experience. Photo: VBA

Meanwhile, Vietcombank is the pioneer bank in Vietnam to successfully apply blockchain on the VCB Digibank digital banking platform, developing the VCB Rewards service - a gratitude program for individual customers. Thanks to blockchain technology, the entire process of points accumulation and redemption is automatically stored and updated on VCB Digibank, allowing customers to actively look up the points accumulation history and perform redemption. Currently, Vietcombank is also researching to expand blockchain applications, cooperating with Fintech companies.

Besides benefits, blockchain applications still have many disadvantages. Vietcombank believes that the legal framework is a big barrier that makes the implementation of blockchain technology at commercial banks still pilot. Vietnam does not have clear regulations for banking products and services applying blockchain technology to protect the interests of the parties involved in the transaction, limiting risks and disputes arising during the operation. .

Representative of Vietcombank (left) shared about the barriers when applying blockchain. Photo: VBA
Representative of Vietcombank (left) shared about the barriers when applying blockchain. Photo: VBA

In addition, there are barriers in terms of research costs, investment in technology infrastructure, along with the requirement of integration and synchronous conversion with other systems and infrastructure that require time to modify the system. and optimize costs to ensure business performance and information security and safety. Blockchain platforms require banks and customers to pay service fees, making it challenging to expand the customer portfolio and use the service on the blockchain platform.

Not to mention, the problem of scalability of the transaction network and multilateral connection is the need of many banks. Experts say that only when the blockchain network is really large enough to connect entities, including subjects in countries around the world, can transactions proceed smoothly and completely.

TPBank's representative said that units should be proactive instead of waiting for the legal completion to start thinking about blockchain. "We are always ready in terms of technology and have researched some problems until the legal basis is improved," a TPBank representative shared.

Experts also believe that blockchain implementation should not follow the trend but always have to have practical problems and be effective for business on the digital platform, combine and exploit with partners, actively research research technology according to a reasonable route.
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