A recent research conducted by World Economic Forum (WEF) established that the blockchain technology can eliminate the $1.5 trillion-dollar supply-demand gap in the international trade economy by supplying funds to small and medium based businesses in developing countries.
The research was carried out by the WEF and the Bain & Company. The two companies mutually agreed that by using blockchain, international businesses can pump an additional $1 trillion in business finance.
The Asian Development Bank Assessment
The Asian Development Bank estimated the current global business gap to stand at $1.5 trillion and is projected to swell to $2.4 trillion in seven years from now.
The Researchers’ Arguments
The investigators argue that the current global business finance gap can be eliminated by $1 trillion if blockchain is widely adopted. According to them, blockchains have the capacity of sharing business records across financial establishments and realize transparency in transactions’ integrity.
In addition, the researchers also observed that blockchain-based business finance systems would especially be advantageous to Asian countries since they comprise just 7% of the business finance gap, with 75% of the international document-based activities across supply chains.
TheOofy.com earlier testified that regulators in mainland China and Hongkong have already started blockchain-based business finance strategies to ensure medium-based enterprises gain more financial power and eliminate fraud.