Adopting Blockchain Could Solve the $1.5 Trillion Trade and Finance Gap
Research conducted by the World Economic Forum and Bain and Company revealed the global trade and finance industry could produce an additional $1 trillion by implementing blockchain.
According to calculations by the Asian Development Bank, the global trade finance deficit gap is currently at $1.5 trillion USD and is expected to rise to $2.4 trillion USD in 2025. Reasoning behind the gap is due to limited access to credit and loan service for SMEs, according to the article.
SMEs have the potential to significantly increase the trade finance industry. Implementation of blockchain can lessen the credit risk of borrowers, offer lower transaction fees and remove expensive blockades to trade, which will allow SMEs to make an impact on the trade and finance industry.