The digital economy is becoming the focus of attention of all countries, and the “One Belt One Road” initiative provides a broad platform for the application of digital technology . The European multimedia news platform “EU Reporter” recently issued an article focusing on the application of blockchain technology in the trade of countries along the “Belt and Road”. The article stated that one of the challenges facing the “Belt and Road” is to overcome the complexity of various bulk trades. Banks are seeking innovative financial systems using blockchain technology to enable such complex transactions to be carried out in a convenient, fast and safe manner. .
It is understood that blockchain is a new application mode of computer technology such as distributed data storage, point-to-point transmission, encryption algorithm, etc. It has decentralization, convenience, high security, low cost, mutual supervision and verification, and open and transparent data. advantage. In international trade, it can help countries build “technical highways.”
and “One Belt One Road” involves cross-border trade, project management, logistics and transportation and other fields. Data interoperability is very important . Especially in the areas of finance, logistics, intellectual property protection and legal services, it is the area where blockchain technology can show its talents.
According to “EU Reporter”, Ali Amirliravi, CEO of Swiss LGR Crypto Bank, is positive about the opportunities brought by the “Belt and Road” initiative. In order to support the supply chain finance business of the economies along the “Belt and Road”, the institution has launched a digital system based on blockchain technology. Based on input data from the supply chain, the system can automatically trigger transactions and payments. For example, you can create a smart contract, once the trading vessel reaches a certain location, the system will automatically release the payment. Or, when the compliance document is uploaded to the system and verified, the payment can be triggered.
In addition, the documents related to the letter of credit can also be shared with different trading partners through the blockchain platform, thereby improving transparency and reducing transaction risks.
The trade of countries along the “Belt and Road” involves many stakeholders, intermediaries, banks and other participants. The transactions are frequent and large in amount, Amirliravi introduced. A large amount of funds are transferred across borders to different financial systems, and different systems are not the same in terms of compliance requirements, data storage, and payment currencies. This makes transactions complicated, and the current transaction system is expensive, slow, and lacks transparency.
Therefore, automation is the general trend, and more and more traditional processes will be replaced by . In the current financial system, documents are paper-based, data is isolated and lacks standardization, which is not conducive to the collection of overall data. Using digital technology, an end-to-end digital trade finance system will be able to generate large data sets, which can be further used to create various predictive models and industry insights. Data will play a huge role in shaping the future of supply chain finance.
Emerging technologies will have a continuing impact on the industry. Many central banks are seeking to issue digital currencies. The “EU Reporter” article stated that this will also have an impact on cross-border currency flows. According to a September 1 article in the South China Morning Post, industry insiders stated that if digital renminbi is to be used for cross-border transactions, a more complex technology platform must be used to connect overseas transaction systems. Sky Guo, the founder of the blockchain company Cypherium, also stated that the central bank’s digital currency is gaining momentum around the world. Payment and exchange across the border.” According to earlier media reports, in April 2020, the National Development and Reform Commission officially included blockchain in the “new infrastructure” category; in August 2020, the Ministry of Commerce of China made clear the The Hong Kong-Macao Greater Bay Area and the qualified pilot areas in the central and western regions will carry out digital RMB pilot projects. China may become the first country in the world to issue digital currencies.
Source/China One Belt One Road Network Compiler/Liu Ting
Responsible Editor/Li Yiran Review/Chen Xiaoyu Producer/Li Shen
Source: China CCPIT