Blockchain could generate $1 Trillion in Trade Finance : World Economic Forum

A podcast report by Coin Survey, 14 September 2018.

According to new research carried out by the World Economic Forum in cooperation with Bain & Company, Blockchain could generate $1 Trillion in Trade Finance.

The finding reported that blockchain technology makes finance accessible for small- and medium-sized enterprises especially in emerging markets fostering economic and financial inclusion while expanding trade.

The report emphasized the constrained access to financing options, such as loans and other lines of credit, that small- and medium-sized businesses face which hinders growth.

Reporting on the calculations by the Asian Development Bank which puts current global trade finance gap at a massive $1.5 trillion, projected to increase to $2.4 trillion in 2025.

But Blockchain technology provides the solution, “more broadly”, this funding gap can be reduced by a massive $1 trillion.

The saviour for SMEs looking for finance, according to the report by the World Economic Forum.

Distributed networks inherent open decentralized process mechanism, could be used in order to lower the credit risk for the financier.

Open shared transparent business records across a multitude of financial institutions provides insight into a company’s financial credibility reducing overhead costs and effectively eliminate trade barriers while building trust.

The Asian economies, developing and emerging markets, the positive effect of wide implementing of blockchain into trade will be profoundly seen.

With approximately 75% of the global document-based transactions that occur across supply chains, for the Asian economies?

BLOCKCHAIN IS THE WAY FORWARD.

Source: weforum.orghacked.comtoshitimes.com

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