Blockchain tech enhances trade safety, efficiency

Business

INNOVATIONS such as the distributed ledger technology can open ways of working and opportunities for creating value, while improving the financial inclusion challenge in PNG, according to ANZ.
The technology, commonly known as Blockchain, is a digital ledger that is distributed or held by people and used for recording information in a transparent manner.
During the recent Bank of PNG’s Blockchain summit, ANZ’s head of trade and supply chain Michael Lim said the technology had many benefits.
They include reducing paper-based transactions and fraud, promoting transparency, driving standardisation and increasing efficiency.
He said in Papua New Guinea, the cost of fraud, manual errors and operational risks in businesses and financial institutions could be significant “given it is still predominately a paper-based economy where cheques and cash transactions are the common means of settlement”.
“These costs and risks can potentially be reduced for our customers through the use of the distributed ledger technology, enhancing the safety and efficiency of international trade and speed of payment,” Lim said.
Lim also shared ANZ’s recent experience and lessons learnt using the technology in Australia.
“There is an opportunity for this technology to be used in other industries in Papua New Guinea,” he said.
“It holds tremendous possibilities to transform the economy”
“The benefits can only be realised through broad industry adoption and collaboration between customers, competitors, regulators and technology companies for it to succeed.”

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