I have been researching the global trade finance gap
How Digitalization can help fix this!
Which from my understanding it is the gap between accessible funding to SMEs and what they need but the current legacy infrastructure cant provide it
$XDC
--Thread--
#fintech #finance
This represents a lack of funding for small and medium enterprises around the world
40% of global SMEs face loan rejection
Digitalization in trade will help close the gap but global standards and legislation are required to realize this potential *UNCITRAL < MLETR dDOC standard
To understand how big those numbers are let's look at the perspective instead of dollars let's convert it to time:
One trillion seconds of ordinary clock time =
( 1012 sec)/( 3.16 x 107 sec/yr) = 31,546 years!
1.8 Trillion $ = 56,782 years
ICC doc 5 Trillion $ = 157,730 years
Years down the road,
This trade finance gap will be eliminated by easier access to funding by tokenization and use of dDOC's
G7 Document - Paperless trade could create an additional 6 trillion$ in extra exports by 2026 + More!
#fintech #blockchain #DLT #innovation #revolution
G7 Ministerial Declaration - "Paper-based Txns, which still dominate international trade are a source of cost, delay, inefficiency, fraud, error and environmental impact. It is our shared view that by enabling businesses to use eTR's we will generate efficiencies and $ savings
Some problems with paper in the supply chain trade finance.
•No visibility/traceability
•Cost more than 3 billion every year (not including paper)
•No datapoints / not really auditable
It's time the supply chain underwent an industry WIDE TRANSFORMATION...
#Digitalization
Standard Chartered Bank says:
SMEs - Small medium enterprises can benefit from R3 Corda blockchain (cough $XDC), to eliminate paper-based processes and ensure regulatory compliance
Using an easily auditable ledger, while preserving data privacy
#TFD_Initiative #DNI_Initiative
Realize the Potential for Digitalization
Standards & Legislation
Global standards and protocols are required
These standards will drive INTEROPERABILITY between different components of the trade ecosystem
Exporters, to shippers to ports, customers, warehousing, and logistics..
PDF from above with my highlighted notes if you want to read into it more:
2021 Trade Finance Gaps, Growth, and Jobs Survey -
scrible.com/s/oF5AO
Metadata from paperless invoicing could expose and help address problems in trade finance
To address the lack of global standards
MAS + ICC + ADB teamed up to create the DSI initiative
#DSI_Initiative = Trade Trust + ITFA < DNI + TFD Initiative< $XDC Network
Fits like a puzzle
We are early.
The ICC #DSI_Initiative is establishing a globally harmonized trade environment to address these challenges and bridge digital standard gaps
5 Jurisdictions have adopted #DSI_Initiative #MLETR
Only .1% of Global electronic bill of lading (eBL) issuance in 2020
One day it will be all the global jurisdictions that will use the #MLETR standard we just need to wait for regulation and adoption
Let's put an end to paper and let's automate the global trade finance industry
$XDC #DLT #Tradefinace #fintech @ITFA
Governments need to adopt legislation that recognizes digital documents (dDOCs) in law.
*Until this happens digitalization will not gain traction*
UNCITRAL drafted model law (MLETR the standard for dDOCs)
2022 = Year of Waiting for Legislation for dDOC standards worldwide
My outlook how MLETR acts as the global standard for interoperability between paperless invoicing dDOCs
Thanks to @XX_1133_1221_11 for that sweet $XDC infographic
This is technical information so if you don't understand that is okay.
Transparency through blockchain / DLT with
KYC & AML (Know your customer + anti-money laundering)
Trade companies will receive (LEI) = Legal Entity Identifier
The Digital System of the future is being implemented and Mainstream Media is being silent
@AndreCasterman @EnigioTime @XinFin_Official
@iccwbo @tradetrust @UNCITRAL_RCAP
Revolutionizing trade finance with blockchain.
ICC calling on national governments to create a modern digital trade ecosystem (MLETR + UNESCAP)
Most jurisdictions still use paper 🤣
Read👇
4 Billion paper documents move across the global trade ecosystem
Stack that paper on top of each other
That would be 520,000 meters HIGH and constitute of half a million trees
Paperless trade using a carbon-neutral blockchain 😉 would meet the 2030 agenda for SDGs
$XDC
These are the data points can be collected by using digital documents.
This provides system automation of the global supply chain and allows data to be collected for decision making & easy auditing.
Confirmation
The Future of Trade Finance.
Today VS The Future (Where I Live)😉🤣
•ALL trade documents digital
•Cost of finance attainable to all stakeholders
•No legal barriers & Aligned systems
•Interoperable systems w/ seamless trade flows (MLETR)
Like anything with the government, it will be slow for legal reform.
Research those keywords I added for you.👀🌱
Start taking notes:
Follow the Industrial Revolution 4.0 or watch Netflix and stay distracted by mainstream media.
DLT is the future
#blockchain #DLT #ISO20022
UK Gov < ICC < ITFA < XDC Network
March 2020 letter from UK Ministry of Justice
"Ending Paper Based Trade"
$XDC #smartcontracts #DLT
The solution to the TF gap is just waiting for regulation and legislation.
Be Ready Citizens
What will happen these next few years will be crazy.
All things in this thread are at the forefront of the blockchain revolution and will revolutionize the trade finance industry
If you want to see some deep connections on $XDC Network that explain some partnerships MLETR etc.
Check out the videos I made on my youtube channel
Sorry for it being so long but I wanted to share all the regulated info I found today
$XDC #DLT #Fintech
Like, follow, tag your friends, or leave some feedback.
RT if you found something interesting to spread awareness of $XDC
Supply Chain Trade finance is being revolutionized!
Do your own research.
Not Financial Advice.
This is just a theory from a Citizen in the Future😉
What do you guys think of my research thread?
I’m looking for constructive criticism
& Tagging you guys to spread awareness to the trade finance gap!
@antgrasso
@sentosumosaba
@Kevin_Cage_
@XRP_OWL
@infostien
@BCBacker
@FINTECHCircle
@InnFin
@BlackberryXRP
@digitalassetbuy
@craigaatkinson If you get a chance in the next couple of days read this.
I wanted to see your thoughts and get some constructive criticism if there was anything I was off on my trade finance gap research thread?
#DLT #Blockchain #MLETR #UNCITRAL #dDOC #Tradefinancegap #fintech
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