blockchain and sme financing - global trade€¦ · trade finance - cost reductions and less...

BLOCKCHAIN AND SME FINANCING

Emmanuelle Ganne, Senior Analyst, WTO

emmanuelle.ganne@wto.org

Author of the book “Can Blockchain Revolutionize International Trade?” (2018)

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I. QUICK INTRO TO BLOCKCHAIN

BitcoinBlockchain

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Blockchain

Amy sends an asset to Bob

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DECENTRALIZED AND DISTRIBUTED

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DIFFERENT TECHNOLOGIESBLOCKCHAIN VS DISTRIBUTED LEDGER TECHNOLOGIES

vs

vs

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Source: Hileman, Garrick and Michel Rauchs. 2017. “Global Blockchain Benchmarking Study.” Cambridge Centre for Alternative Finance.

DIFFERENT TYPES OF BLOCKCHAINS

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DIFFERENT DEGREES OF DECENTRALIZATION

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DIFFERENT CHARACTERISTICS

Based on November 2017 data. Source: Ohnesorge (2018)

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KEY FEATURES

Automation

Time-stamping

Peer-to-peer

Transfer of

assets

Greater security

Smart contracts

TRACEABILITY

TRUST

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II. A GAME CHANGER FOR SME FINANCING?

- Opens new P2P financing opportunities

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Trade finance

- Cost reductions and less burdensome procedures

Source: trade finance global

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- Emergence of new marketplaces

That help SMEs build a credit history Helps assess creditworthiness That give access to alternative sources of financing

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- Monetization of collaterals through tokenization

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Supply Chain Financing

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Interesting opportunities, but…

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An evolution rather than a revolution

Gives more options and opportunities to SMEs

Won’t solve all problems

CONCLUSION

Thank you for your attention!

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