On November 24, 2010, Yuan Yuming, CEO of Huobi China was invited to participate in the “2020 Global Blockchain Policy Forum” hosted by OECD. In his speech delivered at the forum “Trading Under Epidemic: Will Decentralized Ledger Technology Be the Answer to Risks and Inefficiencies in Global Supply Chains,” Yuan explained “Blockchain can provide good technical support to effectively solve the sore points of global trade.”
Yuan Yuming further added that a distributed ledger can share data among different participants, effectively reducing information asymmetry. Consensus mechanisms and digital signatures can ensure that the information is authentic, unalterable and traceable. As a result, a transparent, trustworthy and shared environment can be established, thus reducing overall costs. If assets can be mapped in the chain, companies can quickly recoup funds, shorten the cash flow cycle, and so on.
The development of cross-border trade has been plagued by many bottlenecks, and the global epidemic epidemic has made it face great challenges. According to Yuan Yuming, “Cross-border trade is complicated with asymmetric information between parties.” “Cost on trust, communication, and compliance,” lengthy transaction process,” and “high pressure on participants to take up funds” are three key sore points that severely limit the development of global trade.
The 2020 Global Blockchain Policy Forum has brought together officials from the International Monetary Fund (IMF) and OECD, government ministers and senior policy makers, industry leaders, academics and others to engage in an in-depth exchange of key applications and major policy issues around the blockchain ecosystem in 2020.
As a one-stop service platform for “blockchain + industry”, Huobi China has conducted in-depth study in the field of “blockchain + cross-border trade”. Yuan Yuming introduced the “Blockchain + Cross-border Trade” comprehensive management platform solution deployed by Huobi China, by applying smart contracts for commodities as application cases. The platform can automatically check the credit and qualification of the trading partner, all trading mechanisms are presented as smart contracts, all participants will be verified by their electronic signatures, and all transaction information will be stored in the block on the chain.
Future Policy Directions
Parm Sangha, executive partner of IBM Global Business Services, shared results of IBM’s recent study, “We’re looking at how blockchain is evolving in global trade. Demonstrating the importance of sharing trusted data for most companies requires a reliable infrastructure for the legitimate transmission of data, relating reality to the world of trade. In addition, the industry now wants to see a standardized and globalized environment with rich industry service functions, which needs the guidance of government, regulatory authorities and support from academia.
Anette Dybdal, Head of Business and IT Development at the Danish Maritime Authority, also mentioned that in the last two years, during the digitization of paper documents, it has been noted that the advantages of blockchain can guarantee data security, but not all data will be recorded on the network and the blockchain will be used as a plug-in in the existing system, thus guaranteeing data validity and security at a lower cost.
It is reported that the Global Blockchain Policy Forum is the leading international event led by the OECD’s Blockchain Policy Centre, focusing on the policy implications of the technology and its applications, and the 2020 Global Blockchain Policy Forum will be the third forum. Founded in 1961, the OECD currently has 34 member countries, and its main function is to study, analyze and forecast the direction of the world economy, coordinate relations among member countries and promote cooperation among them.