January 18, 2018 |
Latin America and the Caribbean import $818 trillion of goods and services from the rest of the world every year and export a similar amount, according to the World Bank. Most of that trade is meticulously documented on paper and based on antiquated agreements and protocols that are more than a century old. Now, banks are teaming up with technology companies to develop new tools to speed up the process. The pilot projects have the potential to transform trade — and the way it is tracked and financed — throughout Latin America and the world. The key to much of this potential revolution lies in blockchains, or distributed ledger technology (DLT), effectively programs that gather databases that
Cross-border trade is set to get faster and cheaper as financiers develop distributed ledger projects to streamline documentation and facilitate credit. Latin America could be a major winner.