The UK is one of the world’s leading trading nations, with a total trade value of over £1.4 trillion in 2020. However, the trade process is still largely paper-based, inefficient and costly. According to a report by the World Economic Forum, digitizing trade documents could reduce the time and cost of trade transactions by up to 80% and 30%, respectively.
That’s why the UK Parliament is reviewing a groundbreaking initiative to legalize electronic trade documents proposed by XDC Trade Network Pte Ltd, a Singapore-based company that provides a blockchain-based platform for cross-border trade. The initiative, which is supported by the UK Department for International Trade, aims to create a legal framework for the recognition and enforcement of electronic trade documents, such as bills of lading, invoices and certificates of origin.
The initiative would not only benefit the UK’s trade efficiency and competitiveness, but also its environmental sustainability and social responsibility. By reducing paper usage, digitizing trade documents could save up to 4 million trees and 26 billion liters of water per year, as well as reduce carbon emissions and waste. Moreover, digitizing trade documents could enhance transparency, security and trust in trade transactions, as well as facilitate access to trade finance for small and medium-sized enterprises.
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XDC Trade Network Pte Ltd is a pioneer in the field of electronic trade documents, having launched its platform in 2019. The platform leverages blockchain technology to create immutable, verifiable and interoperable electronic trade documents that can be shared among multiple parties in a secure and efficient manner. The platform also integrates with existing trade systems and standards, such as SWIFT, UNECE and UNCITRAL.
XDC Trade Network is a blockchain-based platform that enables cross-border trade finance, supply chain management and digital asset creation. Here are some of the benefits of using XDC Trade Network for your business:
Faster and cheaper transactions: XDC Trade Network uses smart contracts and digital signatures to automate and streamline the trade process, reducing the need for intermediaries, paperwork and delays. You can save up to 80% on transaction costs and speed up the settlement time from days to minutes.
Enhanced security and transparency: XDC Trade Network uses cryptographic encryption and distributed ledger technology to ensure the integrity and immutability of the trade data. You can track the status and history of your transactions in real time, verify the identity and reputation of your trading partners, and prevent fraud and disputes.
Greater flexibility and scalability: XDC Trade Network allows you to create and exchange digital assets that represent any type of value, such as invoices, contracts, commodities, currencies and more. You can access a global network of buyers, sellers, financiers and service providers, and customize your trade terms and conditions according to your needs.
Improved compliance and sustainability: XDC Trade Network complies with the international standards and regulations for trade finance, such as the Uniform Customs and Practice for Documentary Credits (UCP 600) and the International Chamber of Commerce (ICC) rules. You can also use XDC Trade Network to support green trade initiatives, such as carbon credits, renewable energy certificates and social impact bonds.
The UK Parliament is expected to vote on the initiative in the coming months. If approved, the UK would become one of the first countries in the world to legalize electronic trade documents, setting a precedent for other countries to follow suit. This would pave the way for a more digital, sustainable and inclusive global trade system.