A senior executive at one of Asia's biggest banks has said the $9 trillion trade finance industry needs to be digitized in order to tackle fraud, according to a Bloomberg article published on May 5.Ng Chuey Peng, managing director and head of global commodities finance at Singapore's Oversea-Chinese Banking Corp Ltd., criticized the industry's reliance on paper receipts, and warned forgeries have become so sophisticated that can be difficult to spot fake documents.
Paper records are regularly used for everything from invoices to establishing the ownership of goods, and without them, banks are often unable to lend money to finance trades.
According to Ng, the colors and watermarks used to signify that a document is legitimate are now being copied precisely by counterfeiters.
There have been several examples where banks lost millions because of forged receipts for metal and nickel, affecting big names such as Standard Chartered, Citigroup and the Australia & New Zealand Banking Group.
Although OCBC is working on technology that reduces the need for paper records in commodities trade, Ng did not specify if it was blockchain-based.
In March, it emerged that several international metals companies were backing a blockchain-based solution called "Forcefield" that would increase transparency, improve responsible sourcing and give traders secure ownership of their inventory.
In April, Volkswagen became the latest major manufacturer to join an IBM-powered blockchain platform designed to ensure the cobalt used in lithium-ion batteries is responsibly sourced.
Exec Warns $9 Trln Trade Finance Industry Must Go Digital to Combat Fraud, Cites Blockchain
Publicado en May 6, 2019
by Cointele | Publicado en Coinage
Coinage
Noticias recientes
Ver todo
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.