The World Trade Organization (WTO) has revealed in a recent report that it is positive that blockchain technology will facilitate the easy trading of goods and cut costs as it begins to be taken up more widely.
The WTO outlines the potential of blockchain in its report, a fact which is already known by most developers, but the views have encouraged the industry nonetheless, simply to see the technology recognized by such a major symbol of world trade. WTO Director-General Roberto Azevêdo was particularly encouraged by the potential of smaller enterprises to profit from the utilization of DLTs, commenting:
“Beyond easing trade in goods, digital technologies can facilitate services trade and enable new services to emerge. The Report predicts that the share of services trade could grow from 21 per cent to 25 per cent by 2030. Other effects could include, for example, blockchain helping smaller businesses to start trading by supporting them in building trust with partners around the world.”
The report, entitled ‘The future of world trade: How digital technologies are transforming global commerce’, includes positive comments regarding Ripple and IOTA which are both mentioned specifically. It all goes on to point out blockchain specific uses focusing on supply chains. The WTO states that it hopes that Ripple will be able to continue reducing the cost of cross-border payments and notes the company’s recent expansion, commenting:
“Ripple has ambitions to circumvent the correspondent banking model through its distributed ledger platform. It gives banks the ability to convert funds directly into different currencies in a matter of seconds and at little to no cost, without relying on correspondent banks.”
The report notes although Ripple has licenses with over 100 banks and financial institutions, many banks have not yet taken up the option of using its token, suggesting that banks are still testing the system.
IOTA also get a mention, the report referring to its Directed Acyclic Graph, enabling machine-to-machine communication. Tangle is seen as enabling speedier service for users as more join the network.
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