The Blockchain Technology Can Bridge The Gap in the Global Finance System
Hi Dudes! As you know, I am interested in blockchain technology. I want to present u all a nice prospect for the future.
According to the new report published by the World Economic Forum and Bain & Company, the blockchain, which provides easier financing to SMEs in developing countries, could fill the supply-demand gap of $ 1.5 trillion in global commercial finance. According to reports, the global research companies which re-established their infrastructure with blockchain technology , could reach out to a market segment which they were unable to do it till now and reach up to $ 1 trillion in extra trade finance volume. #blockchain #economy #bitcoin #ethereum #finance
#money
(with the courtesy of :www.ge.com/)
THE DEFICIT İS EXPECTED TO SOAR TO 2 TRILLION DOLLARS
According to the calculations , the deficit due to the failure to meet the demand for global commercial financing is about $ 1.5 trillion. This deficit is expected to rise to $ 2.4 trillion by 2025. Today, many small and medium-sized enterprises willing to expand their business have difficulty getting the credit they need because they have low credit ratings or for other reasons. The searchs show that , the commercial finance deficit has reached trillion dollars- level mainly due to this reason. Distributed ledger technologies make it easier to share business information among financial institutions. Thus, the reliability of SMEs can be assessed more clearly. Researchers argue that the $ 1 trillion of commercial financing needed can be met if the blockchain is used more widely.
MOST BENEFIT TO SMEs
Blockchain and credit risk minimized, the commission fees can be reduced by indicating that experts, "such a practice that will benefit most people, emerging market will be SMEs," he adds. Researchers also added that the blockchain-based trade finance system would be particularly useful for Asian economies, which account for 7 percent ($ 105 billion) of the aforementioned deficit, and would cover 75 percent of global document-based transactions in supply chains.