Blockchain: Exim Bank signs MoU with BRICS development banks

• Exim Bank of India has signed the multilateral cooperation agreement with member development banks of BRICS to undertake “collaborative research” in distributed ledger/blockchain technology.

• The MoU –signed by Exim Bank MD David Rasquinha – was an outcome of the discussions the member development banks had during their annual meeting, with the objective of strengthening the cooperation under the BRICS Interbank Cooperation Mechanism.

• The BRICS grouping comprises Brazil, Russia, India, China and South Africa. Under the umbrella agreement, the signatories have agreed to constitute a joint research working group which will formulate the research agenda and targeted outcome.

• The working group will also carry out research towards identifying potential applications of the distributed ledger/blockchain technology, in the financial sector, particularly in the area of infrastructure financing. The distributed ledger/blockchain technology replaces the old processes and paperwork with a new-found innovative process that is faster and can offer tangible outcome.

• The agreement thus is expected to contribute to enhanced cooperation among BRICS development banks, and would also speed up and simplify processes, and thereby reduce the cost of cross-border payment using the blockchain technology.

• Exim Bank of India is the nominated member development bank under the BRICS Interbank Cooperation Mechanism.

• Other nominated member development banks from BRICS nations are: Banco Nacional de Desenvolvimento Economico e Social – BNDES, Brazil; State Corporation Bank for Development and Foreign Economic Affairs – Vnesheconombank, Russia; China Development Bank Corporation, and Development Bank of Southern Africa.