A joint study by the World Economic Forum and Bain & Company shows that cross-border companies will be able to generate an additional $1 trillion in profits by deploying the distributed ledger technology. If this is not done, such revenue will be lost.
According to the Asian Development Bank, the deficit of trade finance in the global market is currently about $1.5 trillion and is estimated to grow to $2.4 trillion by 2025. Researchers stressed that the blockchain is able to restore most of the $1.5 trillion gap.
The report says that the introduction of the technology will reduce credit risks, reduce commission fees and eliminate existing trade barriers. The main beneficiary of the innovation will be emerging markets, which have great potential, but are still limited in growth due to the lack of access to credit.
WHY IS IT IMPORTANT?
- The current situation with the presence of a trade finance deficit on the global market is largely due to limited access to loans and loans from representatives of small and medium-sized businesses. Researchers say that the lack of funding can be reduced if blockchain is used more widely.
- The distributed ledger technology ensures transactions with a maximum transparency, thus the confidence in representatives of small and medium businesses will be higher.