The way to roll out a major new shift in any form of global system is to attract the attention of those who are able to command the roll-out. Blockchain has been in the public’s periphery since its formulation in 2013 and making the leap into the mainstream will take the interest of a major organization. That’s exactly what happened with the World Trade Organization’s (WTO) involvement with the digital technology. The international trade regulating body feels that there is potential in blockchain technology.
Blockchain Could Streamline World Trade
The report explained how blockchain could streamline the current global systems for trade and finance. Blockchain would reportedly make it smoother to trade consumer goods and give smaller businesses increased credibility to begin trading with larger corporations throughout the world. Blockchain could essentially level the global playing field for all sizes of corporations and promote greater market conditions for proliferated trade and greater globalization. Though, there are some obstacles to the roll-out globally of cryptocurrency and blockchain facilities. Namely, these revolve around privacy issues – something brought to the fore by the EU’s General Data Protection Regulation (GDPR) – taxation, and general consumer protection issues.
World Trade Organization Gush Over Ripple
In that Bitcoin (BTC) opened the mainstream’s eyes to blockchain technology and showed how blockchain worked, Ethereum (ETH) showed the propensity for the use of blockchain systems as a cryptocurrency and through smart contracts showed utility outside speculation, and Ripple (XRP) further showed how blockchain could be utilized by other industries to work as a common problem solver. Ripple earned a special mention from the WTO in its report and showed how enthused the WTO was to be able to work in the field. While the report went on to compare and contrast Bitcoin and Ethereum, it ultimately settled on Ripple as being a successful disruptor to global systems.
The Ripple Effect
But why has special attention been drawn to Ripple? The cryptocurrency has already onboarded several banks for its launch of the xRapid payment system. The reason for the promise of Ripple is through its removal of cross-border fees, which are a hamper to international trade and can prevent smaller businesses from growing. Removing the barrier to entry means that xRapid has a USP that enables it to stand out as a financial system. The transfer of funds can also happen far faster than with other more traditional payment methods. This could help mitigate against all kinds of cash-flow issues, especially those affecting smaller businesses. With the WTO’s backing, Ripple could be the blockchain to follow as the blockchain revolution approaches. Although Western Union did claim that using xRapid didn’t really save them time or money, others suggest the best benefits will be seen by smaller businesses.
Having the World Trade Organization lend their support for blockchain not only gives it huge credibility and helps iron out some of the critiques that are thrown its way, but it also helps show that the blockchain revolution isn’t just restricted to the online trading floor.