Impact Of Blockchain Technology On International Trade Finance
- IJLLR Journal
- 56 minutes ago
- 2 min read
Ishikaa Seth, Alumna: University School of Law and Legal Studies, Guru Gobind Singh Indraprastha University (2020-2025)
ABSTRACT
The advent of blockchain technology has ushered in a new paradigm for international trade finance, promising enhanced transparency, security, and efficiency. Despite its potential, the integration of blockchain into the existing trade finance ecosystem presents numerous challenges and opportunities that have yet to be fully explored. This research paper seeks to bridge the gaps in current literature by examining the interoperability of blockchain with legacy systems, the implications of evolving regulatory frameworks, and the nuanced concerns surrounding data privacy and security.
Furthermore, it delves into the economic implications through a rigorous cost- benefit analysis, assessing the investment in technology against the potential financial benefits. A focal point of the study is the impact on SMEs, which are pivotal to the global trade network yet face unique challenges and opportunities with blockchain adoption. The paper also addresses the need for global standards and protocols to ensure a harmonious and trustworthy international trading environment. Technological challenges such as scalability, transaction speed, and energy consumption are scrutinised to propose optimisations for blockchain in trade finance.
Lastly, the research evaluates the factors influencing user adoption and trust, which are critical for the widespread acceptance of blockchain technology. This comprehensive study aims to provide actionable insights and recommendations for stakeholders in the trade finance sector, paving the way for a more interconnected and robust global trade system.
Objectives –
The primary objective of this research paper is to provide an in-depth analysis of the impact of blockchain technology on international trade finance, with a focus on addressing the identified gaps in existing literature.
The study aims to elucidate the practicalities of integrating blockchain with current trade finance systems, highlighting the interoperability challenges and potential solutions. It seeks to clarify the regulatory landscape, proposing legal reforms that could facilitate the adoption of blockchain while ensuring compliance and protection for all parties involved.
