A joint report termed ‘Trade Tech – A New Age
A joint report termed ‘Trade Tech – A New Age for Trade and Supply Chain Finance’, was recently released by the World Economic Forum (WEF) in collaboration with Bain & Company. It makes a very bold assumption about the future of world trade. It claims that blockchain technology or other such distributed ledger technology (DLT) could possibly rake in close to $1 trillion in new trade over the course of the next ten years.
The global trade finance industry has been the nucleus of growing innovation and has been closely monitored by the global fraternity. DLT has been integrated in various aspects of this industry and has proved to be beneficial for the industry over time.
The WEF and Bain report has confidently claimed that DLT will bring in new trade which will generate a revenue close to $1.5 trillion.
The foreword of the report reads “Distributed ledger and other technological innovations promise groundbreaking advances in trade and supply chain finance by reducing costs and ease of use.”
It further states,
“[Approximately] 30% or $1.1 trillion of new trade volume will result due to DLT removing barriers,” also “[approximately] 40% or $0.9 trillion of traditional will move to DLT for better service levels and lower fees.”
It is quite clear that they want more governments to move to DLT and that is gradually going to happens since the technology cannot be ignore for any longer. The report recommends:
“They should include distributed ledger technology as part of any relevant, forward-looking regulatory considerations, such as cross-border food imports,” it concludes:
A lot of governments have already started making this shift and it has proven to be extremely beneficial for them