Interaction with each participant involves manual paperwork and costs time and money. There are banks, shipping lines, warehousing companies, logistics providers, customs houses, and certifying agencies, to name a few. The conduct of international trade involves a whole ecosystem of providers, apart from the buyer and seller. To start with, DLT will eliminate two of the biggest pain points in trade/ trade finance processes – excessive paperwork and long turnaround time. While improvements have been made in the last two decades, they are small compared to the scale of transformation that is possible with DLT, which automates not only within an organisation, but also at inter-organisation, inter-country, and multi-country levels. Actually, this is not a new problem even the 2001 Doha Round of negotiations under WTO stressed the need to reduce friction in trade processes in developing economies. The goal of DLT is to root out the friction in trade (and trade financing) transactions, which is impeding their growth. The Distributed Ledger Technology resolution It is growing so fast, and so big, that Gartner estimates blockchain to generate an annual business value of US$ 176 billion by 2025 and a mind-boggling US$ 3.1 trillion by 2030. One of the crucial enablers here is Distributed Ledger Technology (DLT), such as Blockchain or Ethereum. This digital foundation will now drive growth in international and domestic trade just like the internet and mobile did in the post-GFC years between 20. The silver lining is that the pandemic leashed widespread digitisation in every sphere, and in every country. Arguably, the fracturing of supply chains dented trade more than any other area of business. Then the war between Russia and Ukraine stressed supply chains further in items like food and crude oil. For example, technology manufacturing was deeply impacted because of semiconductor shortages.
Covid-19 caused unprecedented disruption of supply chains worldwide. Hence, global trade is expected to go right back to pre-Covid levels quite quickly. The pandemic-driven crisis is different because it was caused by a health crisis nothing much changed structurally in the global economy in those two years. WhatsApp launches new privacy features: Silent Group exit, Screenshot blocking and more A very different crisis
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