I have always been intrigued by this question – How to use the blockchain technology in international trade?
One of my most trusted information source is MIT’s OCW, but I never expected to find the following fascinating discussion on this topic:
What is more, this lecture was delivered by none other than Gary Gensler, the current SEC chairman. I have been following Gary online since 2020, and I have huge respect for his acumen and his deep expertise.
This course was delivered in 2018 before Gary stepped into his SEC role, but the content was just as good back then as it is today.
What is the one-sentence takeaway, you ask? Well, in Gary word, “Trade finance may be the most fertile area for the blockchain technology.”
First, let’s recognize that it is a huge piece of pie – 19 trillion dollars worth of goods crossed country lines in 2019 alone (link to statistics).
In international trade, managing all kinds of risks is probably the most important. For example, payment security can vary depending on specific arrangement:
But what problems is the blockchain technology solving? The lecture delves deep into this, and people are expressing different opinions.