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Savings are still being found as the full extent of the Cryptocurrency industry are only just starting to be seen. Many industries are very much exploring how Cryptocurrencies and Blockchain can support them and reduce their overheads, thus increasing their profits.
Trade Finance is one of these. The digital economy is only beginning to make it’s mark but there is a lot of excitement amongst those in the business about the possibilities and the positives surrounding this new generation of finance. At the moment, the degree of savings that are possible are not confirmed because everything is still so new and platforms are still being developed. However, there are certainly high hopes and expectations. Even the big players in the finance world such as Citibank are getting involved. The company is extremely keen to see whether cost reductions pop up in manufacturing and shipping and supply chain management as a whole. This financial institution is taking huge leaps forward with digitalization and is building its own platform to deliver more efficient solutions. Artificial intelligence, Blockchain and the internet of things are all being used very cleverly together to offer a much more automated product. The finer details of the platform, its name and release date are still not know but you can be sure that when launched, it will be pretty special.
Trade Finance Digitalization
Trade finance is massive across the world and it is estimated that it alone is worth $9 trillion globally. However, this figure could actually grow even more with the introduction of Blockchain and a digital economy. There is still a lot more potential out there which is yet to be explored and with the assistance of Blockchain the possibilities are limitless. An industry insider has actually suggested that there could be another $1.5 trillion’s worth of trade finance if more options were exploited. Processes across the world – specifically in certain areas – are still very much paper driven and drawn out. Digitalization would make the whole process a lot quicker and simpler and see profits increase dramatically because more transactions can be made in a single day.
In The Future
Finance experts suggest that Blockchain is the answer to many questions and problems that exist in the world today. However, getting everyone on board is the major roadblock. Governments worldwide are still showing their concerns and some are even boycotting and banning Cryptocurrencies completely. So the ability to trade globally through the digital economy is still not as as easy as it could be or indeed as efficient.
Even though in some industries there is still very much a resistance the Cryptocurrency concept, with other industries embracing it and already seeing the cost cuttings that can be made, it cannot be long before most jump on the bandwagon. The initial concerns of transferring from a paper based system to a more digitialized operation are soon forgotten once management start seeing the financial benefits from the change over. The important bit is making that first big step. It may take a bit more time yet!