“The $18 trillion-plus international trade market is one of those last industries that are resistant to digital transformation in the financial & banking operations. For example, Letters of Credit are issued in physical form to date which is a time-consuming process that takes weeks to get issued. Contour, in this regard, digitizes LC through its decentralized network that operates on distributed ledger technology, cutting back time & costs while assuring that all the parties stay in sync. This way, Contour is genuinely transforming global trade and making it more efficient, bringing up more opportunities for attracting businesses in different corners of the world.”
Globalization relies on banks and corporations adapting digital advancements to transform the trade finance sector. Eliminating structural and financial constraints on global trade attracts more businesses to invest and build a strengthened, interconnected global economy.
International transactions between importers-exporters are more complex than face-to-face exchanges due to distance, and national borders. On one hand, importers want to receive goods even before paying for them while on other hand, exporters want payment surety in full before delivering goods. Not even instant payments can ensure global trades on those terms.
Read more: https://www.emeriobanque.com/news/contour-digitizing-letters-of-credit-in-global-trade
