Between supply and demand in the global financial trading will be a gap of 1.5 trillion US dollars. As a study by Bain & Company and the World Economic Forum shows now, Blockchain technology, this deficit balance.
The Boston-based consulting firm Bain & Company, in collaboration with the World Economic Forum conducted a study in which they investigated the role of the Blockchain in the global financial trade. Accordingly, the Blockchain is supposed to be-technology will be able to close the gap between supply and demand, in the amount of 1.5 trillion US dollars.
To facilitate the financing of SMEs and companies in emerging countries
According to calculations by the Asian Development Bank, the global trade financing gap currently amounts to 1.5 trillion US dollars. It is estimated that these will grow up to the year 2025 to 2.4 trillion US dollars. The reason for the gap is the limited access to credit for small and medium-sized enterprises (SMEs), as well as for companies in emerging countries. As a result, these are prevented from expanding their operations.
As the study indicates now, should be able to provide the Distributed Ledger technology (DLT) to generate additional trade financing in the amount of one trillion U.S. dollars. The Blockchain records between different financial institutions can be replaced. In order to ensure more transparency and, therefore, grants the loan applications more credibility. In addition, the technology should help to reduce fees, reduce credit risk and eliminate barriers to trade.
Of these, especially the small and medium-sized enterprises and businesses are to benefit in emerging countries. This suffering on the one hand, under increased difficulties to obtain credit, have on the other hand, however, also a large game room for the trade. As it says in the study:
“The conversion of paper-based documentation into electronic formats, and the application of smart tools and technologies to help reduce trade barriers and to improve the processing times at the borders, especially for small companies and companies in developing countries with a higher level of risk.”
Asian economies should benefit from a block chain-based trade Finance system in particular. You make 105 billion US dollars, and thus 7 percent of the trade Finance gap. In addition, they result in 75 per cent of the global paper-based transactions within the chains of supply.
The Chinese Central Bank has developed a block chain based financial trading platform, which is already in the test phase. The official Rollout will take place in the near future.
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