Accelerating trade with NFTs for LCs
Accelerating trade with NFTs for LCsOne of the main impediments for trade in emerging countries is the ability for banks to have correspondent banking to advise their letters of credits (LC).
Yes these banks are regulated, on SWIFT but most global correspondents will not allow them to send authenticated SWIFT messages because of de-risking.
This leaves only a few large banks with a monopoly in emerging countries which in term will not serve SMEs and micro businesses.
For example a small company in Central Africa wants to purchase mining equipment from Canada. Normally his bank would issue a commercial LC to be advised by the bank in Canada. The role of the Canadian bank would be to authenticate the LC as it receives the authenticated SWIFT message but no luck for the Central African Bank as it most likely does not have a correspondent bank in Canada.
Thanks to WinstantPay the SME logs on to the Central African bank TradeEnabler Application applies for the LC online and the bank is now able to advise the LC by issuing an NFT which can be authenticated by any one around the world. With blockchain transparency all related parties into the supply chain are granted access to the information they need.
Amendments and additional documents such as Invoices can be attached to support the negotiation process.
Open account transactions not requiring LC can be managed with TradeEnabler global receivables tool.
WinstantPay is a global payment network providing merchants and individuals a reasonably priced global final payment in an instant, in any currency, anywhere, anytime, with integrated anti-money laundering (AML) compliance that reduces time, costs, risks associated with payments. Serving financial institutions of all sizes for the last 18 years with financial services, software development, and business support, WinstantPay is also a founding member of WorldKYC-AML.
For more information on how WinstantPay can deliver cutting edge business, visit our website and follow us on:
Linkedin, Twitter, Facebook, YouTube, Medium, Github, and Telegram.