Seeking Solution Using Blockchain Or Similar Alternatives for Trade Finance
Trade finance by banks and other financial institutions is a vital function in international trade, as it provides delivery and payment assurance to buyers and sellers, and it helps to close the trade cycle funding gap for these parties. However, there may be a problem of finding institutions that are willing to provide capital to trading firms such as SMEs, as many financial institutions are not keen to offer credit to the economically disadvantaged enterprises because there is always the risk that they will be unable to pay off the loan, which will become a deterrent to the growth of these enterprises.
Leveraging blockchain or alternative technologies e.g. Hashgraph, IOTA, etc. to provide an enhanced bank credit system for trade finance to provide newer models of credit and funding guarantees backing trade finance that can effectively reduce credit risks and provide SMEs access to financial capital.
Create a trade financing settlement and risk management system for trade finance that can provide trading participants with quick access to financing at comparative rates.
Trade & Connectivity Challenge 2019
Proposal submissions are open from 13 May 2019 10:00AM to -