Risk Management - Articles
Blockchain technology: its application in Global Trade
January 20th 2023
Many people in the trade industry are waiting for the Electronic Trade Document Bill to pass this year. In fact, if this happened, this document could be pivotal for global trade, allowing the adoption of digital documents for bills of exchange, promissory notes, bills of lading, and warehouse receipts in the UK and Commonwealth countries.
In order for this to be successful, there needs to be a secure and reliable way of transitioning from paper to digital documents: this is where blockchain technology comes in. Blockchain is a distributed ledger technology that provides improved security, increased traceability of sensitive materials, reduced processing and authentication times, and enhanced data integrity. It can be used to facilitate the digitalization of different rules of origin processes and lower the cost of payments and financing.
Blockchain helps to prevent the proliferation of falsified documents by protecting data from hacking, theft, or fraud. It also helps to increase the traceability of controlled and dangerous substances such as nuclear material, medical supplies, and chemicals during transportation.
Moreover, the decentralized storage system offered by blockchain makes it possible to process paperwork and transactions much faster, which could unlock up to $1.2 trillion of exports.
The Electronic Trade Document Bill is an exciting development for the trade industry, and blockchain technology could be the key to a painless and secure switchover to a digital trade world.
Learn more about it here: https://www.tradefinanceglobal.com/posts/look-at-blockchain-for-export-controls/
