According to the latest report from the World Economic Forum, Blockchain can attract as much as $1 trillion to the world trade in 10 years. As WEF sees a significant growth of Blockchain by 2028, what else did it found out?
13 September, AtoZ Markets – The recent report from the World Economic Forum (WEF) has claimed that distributed ledger technology, such as Blockchain, is potentially able to generate $1 trillion in new trade over the next decade.
World Economic Forum Sees $1T from Blockchain by 2028
The report entitled ‘Trade Tech – A New Age for Trade and Supply Chain Finance’ has been published in collaboration with Bain & Company. It assesses the DLT potential within from the perspective of the global trade finance industry. 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.”
Among the key findings of the report, the WEF and Bain have forecasted that the DLT can bring in the new flow of trade. This, in turn, can help close the currency trade finance gap of $1.5 trillion. The report reads:
“[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.”
The report further includes some similar signals for governments, as it claims that even for those within economics blocs, such as the European Union, it is very important to embrace the DLT technology.
“Laggards will become disadvantaged”
The report further notes:
“International trade and global value chains have been critical for both the wealth of nations and the reduction of geopolitical tensions. Yet, still more remains to be done. Archaic processes pose a significant obstacle for small and medium-sized enterprises (SMEs) and trade with emerging markets. Transforming paper-based documentation into electronic formats and applying smart tools and technologies help to reduce trade barriers and improve processing times at borders, particularly for small businesses and companies in higher risk developing countries.”
The WEF also stated that global nations should include distributed ledger technology as part of any relevant regulatory initiatives. The report has even proposed a use case of the DLT technologies for the countries – “cross-border food imports.”
The WEF has concluded that some of the nations are already starting to make first steps towards adopting this nascent technology. It notes:
“The laggards will become increasingly disadvantaged.”
Malta Blockchain Progress
In fact, one of the most Blockchain-developed countries, Malta, has made yet another move, which aims to facilitate the use of cryptos and Blockchain across the island. AtoZ Markets reported that the largest world’s crypto exchange by trading volume, Binance, is reportedly collaborating with the Malta Stock Exchange (MSX). The companies are planning to facilitate the security token trading on the “Blockchain Island,” according to the local media reports.
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