Thread by @UtilityTheory

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.

https://twitter.com/UtilityTheory/status/1471276083764994050?s=20

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

https://twitter.com/X__Anderson/status/1475826809518309381?s=20

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

@threadreaderapp unroll

@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