Distributed Ledger Technology Could Provide $1.5 Trillion Boost To World Trade By 2028
One of the key barriers to make trade between countries is the currency exchange and tracking of supply chain traded. Distributed Ledger Technology (DLT), a key component of Blockchain technology could be the solution to simplify the trade barrier between countries.
According to a report titled Trade Tech –
A New Age for Trade and Supply Chain Finance published by World Economic Forum (WEF), the distributed ledger technology implementation of supply chain solutions could be the answer. The amount of the trade can be $1.5 trillion by 2028.
From the whitepaper:
Concrete examples indicate that the technologies could narrow the current the trade finance gap of $1.5 trillion, representing roughly 10% of global merchandise trade volumes. International trade and global value chains have been critical for both the wealth of nations and the reduction of geopolitical tensions. Yet, still more remains to be done. Archaic processes pose a significant obstacle for small and medium-sized enterprises (SMEs) and trade with emerging markets. Transforming paper-based documentation into electronic formats and applying smart tools and technologies help to reduce trade barriers and improve processing times at borders, particularly for small businesses and companies in higher risk developing countries.