Crypto adds efficiency to global trade and financing, says Bequant exec
Global trade and financing suffer from inefficiencies because of traditional infrastructures. However, according to Martha Reyes, the head of research at Bequant, crypto can fix this issue.
In an interview with Cointelegraph, Reyes shared her thoughts on the state of global trade and financing and how crypto makes this more efficient. According to Reyes, despite the growth and magnitude of global trade, areas like remittance payments still suffer from the number of intermediaries that transactions have to go through. This leads to lengthy transaction times. Reyes notes that legacy systems for cross-border payments make global trade a “prime candidate” for blockchain technology adoption.
Reyes adds that the traceability of ownership for documents and agreements stored within smart contracts makes security tighter. Apart from this, the researcher notes that transaction settlement within blockchains is a lot faster and reduces friction.
Apart from global trade, Reyes thinks that tokenization helps in the aspect of financing as well. This may add benefits for small and medium enterprises (SMEs) in the form of access to capital.
Reyes also cited XDC Network as an example. “The smart contract transactions feature a digital coin, XDC, which represents the value of off-chain, bank originated assets that have yield generating capabilities,” says Reyes.
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The research head believes that this is a way to “break through barriers” and give SMEs access to financing that’s outside of the sphere of the traditional financing system. Reyes notes that this “can also increase competition among lenders.”
Adding to the topic, the Bequant head of research also discussed
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