Global Blockchain-based Trade Finance Solutions: Analysis of Governance Models and Impact on Local Laws in Six Jurisdictions

Global Journal of Comparative Law, 11(2022) 167-196

University of Hong Kong Faculty of Law Research Paper No. 2023/18

25 Pages Posted: 3 Mar 2023

See all articles by Jon M. Truby

Jon M. Truby

Newcastle University Law School

Andrew M. Dahdal

Qatar University - College of Law

Oriol Caudevilla

The University of Hong Kong - Asian Institute of International Financial Law

Date Written: 2022

Abstract

Most people generally link blockchain technology with the cryptocurrency phenomenon of the last decade. The application of this innovative new technology, however, is actually much broader. One of the most promising areas where blockchain has the potential to be revolutionary is trade finance. Despite the economic importance of trade finance as a core component of commercial trade, the fundamentals of trade finance have not dramatically changed for centuries. Most of the transactions continue to be largely paper-based and counterparties still face many of the same risks, obstacles and challenges they did when the Spanish empire ruled the seas. The use of blockchain can address many of these inefficiencies and reduce the friction encountered by small and medium enterprises using trade finance arrangements to access global markets. This article analyses the main advantages of using blockchain-based trade finance solutions and explores the associated legal developments in a cross section of six jurisdictions that have all taken (or are taking) different approaches. Those jurisdictions are the United States of America, United Kingdom, Australia, Singapore, Hong Kong and Qatar. The paper concludes that legal reforms have an important role in assisting the introduction of blockchain into trade finance. Moreover, such an introduction will greatly benefit the economic prospects of SMEs seeking to reach transnational markets.

Keywords: Blockchain, Trade Finance, Financial Regulation, Governance, Smart Contracts, Data Protection, Privacy, Comparative, Australia, Singapore, Hong Kong, Qatar

Suggested Citation

Truby, Jon M. and Dahdal, Andrew M. and Caudevilla, Oriol, Global Blockchain-based Trade Finance Solutions: Analysis of Governance Models and Impact on Local Laws in Six Jurisdictions ( 2022). Global Journal of Comparative Law, 11(2022) 167-196 , University of Hong Kong Faculty of Law Research Paper No. 2023/18, Available at SSRN: https://ssrn.com/abstract=4371699 or http://dx.doi.org/10.2139/ssrn.4371699

Jon M. Truby

Newcastle University Law School ( email )

Newcastle upon Tyne, NE1 7RU
United Kingdom

Andrew M. Dahdal (Contact Author)

Qatar University - College of Law ( email )

College of Law
Doha, 2713
Qatar

Oriol Caudevilla

The University of Hong Kong - Asian Institute of International Financial Law ( email )

Faculty of Law, Pokfulam Road
Pokfulam
Hong Kong
Hong Kong

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