The Blockchain Revolution is Here!

Make no mistake. Blockchain is going to revolutionise how trade transactions are currently done.

This would create far reaching implications for FIs, corporates and stakeholders in the trade ecosystem.

Picture currently documents flow through manually. The entire process could take up to 2 weeks end to end for an exporter to send shipping documents through their bank for ultimate delivery to the importer via the importer's bank if financing is required.

The financial supply chain hence is less efficient than the physical supply chain if shipment is say from China to Japan which takes 2 days normally to arrive at the destination.

A well thought out trade blockchain platform must have the following ingredients:

> digital strategy endorsed by home countries trading with one another e.g. cooperation between HKMA and MAS' GTCN cross-border connectivity network. Half of the battle is already won with the blessing of the regulators.

> framework to include compliance, standards and rulebook for open account transactions given there is no equivalent of UCP600 for OA.

> participating parties such as banks, corporates, fintech companies, custom office, shipping and insurance companies etc. to start piloting DLT transactions and eventually leading to full commercialisation. If there is a will there is a way.

Please reach out to us for further insightful dialogue on this blockchain revolution.