With every passing day, the world is inching closer to accepting blockchain technology as the future of exchange. It is now catching the attention of heavyweights from diverse business backgrounds.
Advantageous transaction features of blockchain are being utilized by various businesses, with Daimler AG being the latest to join the bandwagon. Daimler has carried out its first transaction over R3’s Marco Polo trade finance network.
This transaction was done between Daimler and Dürr and included the order and delivery agreement from Dürr’s material testing arm, Carl Schenck AG. Here, payment was done in a secure manner using the conditional payment commitment delivered by the buyer’s bank.
It is important to note that Marco Polo’s LBBW had provided the financing and payment gateway. In the procedure, after the final equipment was delivered, the blockchain tech was used to upload the order fulfilment-related information. This way, the new data was added after the previously agreed transaction data, effectively and efficiently.
On this blockchain development, Jürgen Vogt, Director, Treasury Controlling, Analytics & Standards at Daimler AG, said,
“At Daimler Treasury, we continuously work on the digitization of our business processes. The optimization potential inherent in trade finance transactions is high. This pilot project between Dürr and LBBW is an important step for us to evaluate future possibilities of blockchain technology in this field, to digitize the trade finance workflow and make it more efficient and transparent.”
Marco Polo had previously gained the attention of the crypto-community after it added another heavyweight, BoA (Bank of America), under its belt.
BoA leveraged R3’s Corda-distributed ledger technology for bridging the gap between trade and supply chain financing solutions.
UAE notes surging crypto demand as country deliberates regulations
2019 has seen large-scale blockchain adoption. With China trying to beat the world to its central bank-backed digital currency, the United Arab Emirates [UAE] too, has begun drafting regulations. According to reports, UAE has been preparing for a rapid expansion in light of increasing demand for cryptocurrencies.
According to Google trends, the terms with an increased volume include, Bitcoin and cryptocurrency, along with other cryptos. However, apart from the search hike during the 2017-18 bull run, the trends for Bitcoin and cryptocurrency were at a rise in the UAE in 2019.
The search volume for Bitcoin remained quite high in the sub-regions of Umm Al Quwain, Ajman, and Ras al Khaimah. While ‘cryptocurrency’ search trends were high in Dubai, Abu Dhabi, and Fujairah.
Apart from the rising trend, the country has seen crypto transactions worth over $210 million, making it one of the top countries reporting digital asset transactions. At Dubai’s International Financial Centre the country registered 100 fintech firms, a three-fold growth since 2018.
In early 2019, two UAE startups raised almost $210.5 million in token sales, accounting for almost a quarter of the total capital amassed globally according to CoinSchedule in April.
According to reports, the increased trading has lured many institutional investors and may expand in Dubai mainly due to extensive inflows of institutional investors.
UAE had previously announced its Securities and Commodities Authority [SCA] had sought the opinion of financial industry partners for finalizing the draft. For which it invited various investors, brokers, financial analysts, researchers, media and other interested parties to review the draft.
SCA had also announced to introduce Initial Coin Offering [ICO] by the end of the first quarter, while it was working on the ICO token trading platform.