Thu, Jul 18, 2019
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Blockchain can add $1tn to world trade in ten years: World Economic Forum

Friday, September 14, 2018

Laxman Pai, Opalesque Asia:

Blockchain might be able to dramatically boost trade finance across the world, generating a whopping one trillion US dollars in international trade finance.

A new joint research report by the World Economic Forum and the global management consultancy giant, Bain & Company said that with the rise of technologies, such as the internet of things (IoT), blockchain and artificial intelligence, the means to facilitate international trade are growing, too.

The report, 'Trade Tech - A New Age for Trade and Supply Chain Finance' forecasts distributed ledger technologies (DLT) will bring in new trade, helping close the current trade finance gap of $1.5 trillion.

According to the WEF report, an additional $1 trillion in financing will be added to global supply chains by 2028 as a direct result of increased DLT integration. This figure represents new capital that would have otherwise been missed out on had DLT never existed.

"[Approximately] 30% or $1.1 trillion of new trade volume will result due to DLT removing barriers," they say, adding that "[approximately] 40% or $0.9 trillion of traditional will move to DLT for better service levels and lower fees."

As part of the whitepaper, WEF argued that national and regional government have no better alternative than to adopt blockchain and set enabling policies to benefit from the technology. Implementing blockchain would lower the credit risk for financiers, reduce the necessary fees, and effe......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Crypto: U.S. market regulator issues guidance on custody of digital asset securities, Bitcoin's stunning growth makes it investable, admits legendary hedge fund manager, Institutional investments rise with bitcoin volatility. Wait, what?, Can blockchain build a better bank? Experts weigh in - The Ledger, Cryptocurrency startups get partial green light from Washington, Facebook's Libra cryptocurrency faces more backlash, China's central bank developing own digital currency in response to Libra[more]

    U.S. market regulator issues guidance on custody of digital asset securities From Reuters: The U.S. Securities and Exchange Commission (SEC) on Monday issued a notice on broker-dealer custody of digital asset securities, amid industry requests for clarity on whether they can hold such a

  2. PE/VC: Burger King in China and Turkey attracts private equity buyers, China's VC market is said to enter a downturn, VC industry makes slow progress on diversity[more]

    Burger King in China and Turkey attracts private equity buyers From Finance Asia: The world's largest franchisee of the fast-food chain outside the US is on the block. One wealthy Turkish family holds the key to a successful sale. Burger King is back up for sale in China and Turkey

  3. Hedge funds post best first half in decade, Viking Global funds surge, Blue Harbour's double windfall[more]

    Hedge funds post best first half in decade From Bloomberg: Hedge funds reported the best first half since 2009 as equity managers capitalized on the surge in stocks. Funds rose 5.7% from January through June, according to Hedge Fund Research Inc.'s asset-weighted index of managers. Equi

  4. Private real estate fundraising nosedives in 2Q 2019, hitting a five-year low[more]

    Laxman Pai, Opalesque Asia: Private real estate fundraising decreased significantly in Q2 2019 from the previous quarter, hitting a five-year low, Preqin said in its quarterly update on real estate. Forty-seven funds reached a final close, raising just $29bn, which marks a sharp decrease fro

  5. Regulatory: SEC reforms open door to BDC market shakeup, Regulatory rollback: First set of Volcker Rule reforms finalized[more]

    SEC reforms open door to BDC market shakeup From Reuters: The US Securities and Exchange Commission's (SEC) fund of funds proposals potentially open the door to a shakeup in the Business Development Company (BDC) market. Under the existing guidelines, regulated funds are prohibited from