Many corporate firms that are top are experimenting with the digital currency. Even the top banks are experimenting as they think it can be used for as a tool for managing transparent funds so that the working money can be utilized optimally, settlement within subordinates and making payments to the vendors as well as supplies. While they do so, they are very careful regarding regulatory compliance.
Many firms and banks are planning to make use of virtual currency even though bitcoin lost their glimmer. They are doing so because of the operation that digital currency is making use of that is blockchain technology. All this was conveyed by a person who knew everything regarding this matter.
The companies that are willing to run the plot of managing internal treasury, maintaining record and trading financial functions include Hindustan Unilever Ltd (HUL), HDFC Bank, Reliance Industries Ltd (RIL), ABG Shipyard. This information was conveyed by a people who were working on blockchain experiment.
While RIL, ABG Shipyard, and HDFC Bank remained unresponsive about the questions, HUL responded by saying that they are consistently looking to strengthen the digital abilities.
One of the people mentioned above said, “The cryptocurrency would only be used by the companies and banks internally.” Further, he said, “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.” The exact date as to when the firms and banks that are planning to be a part of this pilot program has not yet been mentioned.
When a firm has many subordinating companies, they have to move the cash back and forth amid different entities. Such transferring of money happens in millions every year, mainly when it is for infrastructure and banking. Presently these might be book organizations or there might be a necessity of paying and receiving of actual cash. Experts stated that this is the place where internal digital currency comes into play.
Partner and head of CFO advisory, KPMG, Sai Venkateshwaran said that many big firms are carrying out an evaluation of different cases of blockchain which includes areas like management of intra-group transactions and logical extension. He said that they are experimenting to see how it can be used for group treasury management tool so that the working capital and money can be managed efficiently.