Blockchain can boost global trade by $1.1 trillion; WEF report

The World Economic Forum (WEF) has released data that reveals that blockchain would boost global trade by over one trillion dollars ($1.1T). Data is covered in a new whitepaper on blockchain titled the “Windows of Opportunity: Facilitating Trade with Blockchain Technology”.

As the title suggests the report compiled in collaboration with the Inter-American Development Bank (IADB)the report covers various areas of opportunities in the blockchain sectors to facilitate global trading and financial systems.

The report presents a comprehensive framework that would allow the users to implement blockchain technology and facilitate one window solution for their respective financial needs.

The report argues that electronic trade windows have reduced processing times at different borders and cut down the time for trading at various venues.

A WEF email reveals that the

“Single windows increase exports and gross domestic products and improve transparency and user experience. As of 2017, 27 countries had full electronic single windows and 36 had a partial single window. Yet challenges remain to improve effectiveness and implementation.”

The blockchain technology potential can lower trade time and costs therefore, it is poised to facilitate $1.1 trillion new trade volumes globally. The technology offers benefits such as:

  • Interoperability: with improved visibility to manage risks, recognize patterns, conduct pre-arrival processing, share data and improve user experience
  • Traceability: enabling more complete data on shipments, supply chains, and audit trails by bringing together single windows and/or private sector trade intermediaries on a common blockchain
  • Automated processes: automated payments and reconciliation to accelerate revenue collection
  • Reliability of data: ensuring that data is fixed and providing single-window users with unique identities so that they allocate relevant parts of their identities to third-party service providers

“To take full advantage of…

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