Blockchain can reportedly become a viable solution to help the finance sector avoid billion-dollar scandals, as well as support trade financing, professionals claimed.
Specifically, the pressure generated from the existing economic crisis, obsolete trade finance systems and increasing geopolitical tensions have all reportedly heavily affected the growth of the international trade finance sector.
To reduce the negative impact of said factors, big banks, nominally ABN Amro, Société Générale and BNP Paribas, have ceased their operation in the sector, whereas others reportedly enhanced their funding processes, as revealed by Samir Neji, founder and current head of blockchain-powered trade finance firm Dltledgers.
Per Neji, following the implementation of blockchain, traders will reportedly be able to steer clear from the arduous paperwork, email exchanges and phone calls involved in the process of securing trade finance.
DLT will reportedly be able to make the trade execution process more transparent, via data sharing in a real time manner.
“If banks see their trades as carrying less risk, which they do, the trader will be in a much better position to attract financing, and in many cases will end up paying lower rates. This has to be positive for the sector.”