The digitization of the trade finance industry is long overdue, especially in the post-pandemic era where international trade had experienced a solid economical shock. No doubt that trade partners across the world are looking for a fast, safe, and reliable way of processing trade data under an association with banks and financial institutions. 

According to the financial experts, it can only be achieved by digitizing trade finance and getting rid of age-old paper-based processes which are operating till now. Secondly, supply chain finance must be brought back to a stabilized level after the pandemic disruption. 

Blockchain Is Genuinely Turning The Table 

“When will the trade finance services start working on Blockchain?” This is probably the most asked question among trade parties on various trade-related conference programs about how close the industry is to experiencing blockchain in trade transactions. 

But it's not as easy as it seems. Reasons? Till today, cross-border trade involves several paper-based transactions while communicating different information such as country of origin, product details, or value of transactions under an LC, SBLC, BG, etc. It generates a higher volume of documentation. This is why distributed ledger technologies (DLT) such as blockchain that uses a decentralized network to enable participants to initiate transactions even in the absence of a trusted, legal central authority can be seen as a game-changer.

Read more: https://www.emeriobanque.com/blogs/blockchain-technology-for-the-trade-finance