Digital Bill of Lading The Future of Trade in Block Chain Ocean

In today’s Global Digital Village our Passport is accepted across the Countries and data is stored digital in immigration check. VISA and Master Cards are truly digital for payments. Then why not the Global Trade be truly digital ?

 

Letter of Credit:

In Global trade, Letter of Credit as a Financial Instrument is required if the Seller and Buyer do not have a trust relationship. When the goods are shipped using at least two different transportation modes, LC will require a standard document ‘ Bill of
Lading’ to acknowledge receipt of Cargo.

Paper Bill of Lading are the only mode of choice today, causing all the involved parties difficulties, costs, and discrepancies.

 

Lets sail through few nautical miles, on how the Trade industry benefit from Going Digital especially in the future world of Block Chain.

 

Digital Bill of Lading:

An Digital bill of lading or e-Bill of lading is the legal and functional equivalent of a paper bill of lading. It should digitize the core aspects of Physical BL, namely its legal acceptance as a receipt, as evidence of or containing the contract of carriage
and as a document of title. It should follow Global Best Practices- like how SWIFT message is standard across countries.

There are 6 main functionalities, a Digital version of the bill of lading needs to replicate –1)the identification, 2)signature, 3)correct address, 4)port/airport, 5)content and 6)trade terms and presentation of documents.

Please refer to below link for the Rules of Electronic Bill of Lading

http://comitemaritime.org/Rules-for-Electronic-Bills-of-Lading/0,2728,12832,00.html

 

Block Chain in Trade Finance

Distributed ledger technology, popularly known as blockchain, came into the picture in early 2014 and banks are now beginning to catch onto and further investigate the trend. Blockchain is revolutionising the exchange of value in a similar way to how the
internet revolutionised the exchange of information and communication.

Blockchain technology could revolutionise trade – making it cheaper, quicker and simpler for businesses to trade internationally.

There are two aspects of this technology:

1)     The promise of new opportunities and

2)     Scope for cost savings.

 

The Block Chain technology offers a potential medium to exchange financial and non-financial data without intermediaries, and the tamper-proof nature of the blocks eliminates the possibility of fraud. This technology could also address operational risk through
transparency, thus significantly helping banks reduce their operational costs when executing controls.

 

Why this is important for trade finance

 

Some of the key challenges facing the trade finance sector, which can be solved by Block Chain Technology.

 

For example:

 

Transparency

Feature to build transparency and consensus will help mitigate the risk of documentary fraud and thereby reduce the cost of transaction reconciliation between and within banks.

Traceability

The traceability associated with blockchain could potentially provide assurance and authenticity of products in the supply chain.

Data Privacy

The challenge of data privacy among counterparties to trade transactions could be overcome by utilizing tokenisation as a form of cryptography, whereby parties are only allowed to access permissioned information.

Smart Contracts

Smart contracts offer the possibility of self-executing contracts triggered by the efficient exchange of digital data, potentially revolutionising the long-serving Letter of Credit.

Internet of Things

Internet of things (IOT) which is still in the early stages of application to trade finance could be used to move physical assets while they are simultaneously tracked and purchased.

 

 

Source: Digital Bill of Lading The Future of Trade in Block Chain Ocean

2017 Blockchain Global Summit – Shape The Future

The BitKan “2017 Shape the Future” Blockchain global summit has changed its location, it will now be held in Hong Kong instead of Beijing and will take place later this month on September the 20th and 21st. Tickets for the event are still available to purchase.

BitKan has changed the location of their “2017  Shape The Future“summit from Beijing to Hong Kong, where it will now be held in the Grand Hyatt Hotel where it will run from September the 20th until the 21st. Tickets start at 1888 RMB. Anyone with tickets to the Beijing event will still be entitled to use them in Hong Kong.

BitKan ,founded in 2012, have seen the development of the Chinese Bitcoin industry since the coins early days. After 5 years of growth they now have a global user base numbering in the millions. They provide useful digital currency news, OTC trading, Bitcoin wallets, mining pool monitoring and more. The company is devoted to promoting the concept of Bitcoin and the block chain within the mass media.

The “Shape the Future” Global Summit

The event will provide a platform for guests and companies to introduce the latest Bitcoin technology and products associated with Bitcoin as well as bringing their individual vision of a Bitcoin future. BitKan state that they will have over 80 guests from top tier companies, with an audience of 800 including over 200 key influencers in the media world.  Speakers include Bitmain CEO Jihan Wu, the CEO of bitcoin.com Roger Ver, John McAfee and CEO of Huobi Lin Li. The schedule has day one labelled as “Shape The Future Summit”, with day two labelled as “Blockchain Tech Sessions”. For a full, up to date line up of the guest speakers, see the Bitkan website.

The Bitcoin Documentary

The event will also see a screening of the Bitcoin “Shape the Future” documentary which witnesses the history of BTC in China. Starting from Satoshi Nakamoto’s paper in 2008, it will chart how BTC has evolved into a 40 billion USD digital asset. It will focus on what has happened over the last 9 years of Bitcoin development and the role that China has played within the BTC industry.

Have you got your tickets? What do you think of the lineup? Let us know in the comments below?

Images courtesy of BitKan, Shape the Future

The post 2017 Blockchain Global Summit – Shape The Future appeared first on Bitcoinist.com.

Source: 2017 Blockchain Global Summit – Shape The Future

India’s Central Bank Considering Creating Digital Rupee, Dislikes Bitcoin

Following India’s unsuccessful demonitization scheme, the Reserve Bank of India is considering creating its own digital currency

India’s Central Bank, the Reserve Bank of India (RBI), is considering the possibility of issuing its own digital fiat currency as an alternative to Bitcoin, according to Economic Times. The bank expressed its displeasure with cryptocurrencies such as Bitcoin, calling them “private currencies.”

According to the central bank’s executive director Sudarshan Sen:

« As regards non-fiat cryptocurrencies, I think we are not comfortable. Bitcoins for example. That's a private cryptocurrency. Right now, we have a group of people who are looking at fiat cryptocurrencies. Something that is an alternative to the Indian rupee, so to speak. We are looking at that closely.”

Position of RBI on cryptocurrencies and other developments

The Indian central bank has been continuously issuing warnings to the public about the use of digital currencies like Bitcoin. According to the bank, such currencies present potential financial, consumer protection, legal, and security-related risks.

However, several media reports claimed that cryptocurrencies are becoming increasingly popular to investors. This popularity has reached greater heights since the assumption of Donald Trump as president of the US due to the huge jump in the prices of virtual currencies.

In its comment on the cryptocurrencies in March, then RBI deputy governor R Gandhi said that the potential of virtual currencies is overstated, citing the absence of a monetary authority or central bank supervising their use.

« Value seems to be a matter of speculation. Legal status is definitely not there. While this is a purported objective of a VC, it puts a natural limit for its progression. And finally, the usage of VCs for illicit and illegal activities has been reported as uncomfortably large. »

Source: India’s Central Bank Considering Creating Digital Rupee, Dislikes Bitcoin

Bitcoin’s Price Declines Anew, Hits Three-Week Low

There are three possible reasons for Bitcoin’s price hitting its three-week low of 3,300 levels, likely a correction rather than a crash

The price of Bitcoin price has declined below the $4,000-level, extending its losses in overnight trading to reach a three-week low of $3,275. This represents a 35% drop from its high of $5,000.

Put differently Bitcoin is now trading virtually flat month-on-month for the first time since mid-2017.

Possible reasons for the decline

There are several possible reasons behind the recent drop in the price of the number one virtual currency. One of these is the alleged plan by the government of China to ban the activities of various cryptocurrency exchanges in the country. The government has not formally announced any plan as such, but much rumor and innuendo abound.

Charlie Lee has been tweeting about this lately. He is the brother of BTCC CEO Bobby Lee, so many believe he has insights into the government’s plans toward Chinese exchanges. When critics pointed out that BTCC competitors OKCoin and Huobi had announced they were still open for business, Lee chortled:

 

OKCoin and Huobi are meeting with regulators tomorrow. They might soon change their tune. 😞 https://t.co/sS05td86X4

— Charlie Lee (@SatoshiLite) September 14, 2017
//platform.twitter.com/widgets.js

 

Another possible reason for the price drop is the sharp criticisms made by JPMorgan CEO Jamie Dimon on Bitcoin.

Counterpoints

However, there is the possibility that even if China heavily regulates exchanges in the country, it will have small effect on Bitcoin in the long term as the over-the-counter (OTC) market for the digital currency will continue to post solid performance. China also makes up a much smaller percentage of global trading volume than in the past.

The negative comments by Dimon on Bitcoin are not also surprising since if Bitcoin goes mainstream, Dimon is likely out of a job.

Some on the /r/bitcoinmarkets subreddit, such as joyrider5, believe this is simply a technical pullback. The price touched an important psychological level ($5,000), possibly leading to a sizeable amount of profit-taking. It’s important to remember that nothing can go straight up forever, and that corrections are healthy in the long run.

Some believe that the price of Bitcoin will reach a low of $3,000 which will be followed by a rally back into the low-$4,000s and possibly beyond. Until then, Bitcoin will only regain its bullish position if it surpasses the $4,400 level.

Source: Bitcoin’s Price Declines Anew, Hits Three-Week Low

Russia Central Bank Categorically Against Regulating Crypto as Money

Russia’s central bank is “categorically against” regulating crypto like forex or money, its head says.

Russia central bank head Elvira Nabiullina has said it is “categorically against” regulating cryptocurrency money, or equating it with foreign currency.

Speaking at a forum organized by a group of Russian banks, Nabiullina, who previously said she is against cryptocurrency appearing on the Moscow Stock Exchange, warned about so-called “cryptomania” occurring, which was “dangerous.”

“We are categorically against regulating cryptocurrencies as money, as a means by which payment can be made for goods and services, and against equating them with foreign currency,” she stated via RIA Novosti.

“Because, as I’ve said more than once before, we understand there’s foreign currency, states which issue it, economics, central banks supporting it. Here the phenomenon (of cryptocurrency) is less understood.”

Russia continues to present a mixed perspective on how to regulate cryptoassets, with different prominent government sources giving contrasting views.

At the forum, the situation appeared no different. Nabiullina commented that the central bank’s position was “tougher” than that held by the chairman of the organizing banking association, Anatoly Aksakov.

Speaking earlier at the event, Aksakov said he favored “legalizing, arriving at a definition of what cryptocurrency is, arranging a space in which it should be allowed to trade, introducing a register for miners etc.”

Nabiullina, for her part, made reference to a crypto “gold rush” earlier this month, which she said should be averted.

Russia currently plans to present cryptocurrency regulation plans by the end of 2017. It remains to be seen what exact form these will take for ordinary citizens.

Source: Russia Central Bank Categorically Against Regulating Crypto as Money