Spanish banking giant BBVA has successfully piloted a blockchain solution for paperless trade transactions between Europe and Latin America.
The blockchain pilot, built on the Wave platform, was carried out to automate the electronic submission of documents for an actual sale transaction between Mexico and Spain in a move to speed up the time required for sending, checking and authorizing cross-border trades, a press release states.
The trial saw the time taken for document verification reduced from 7–10 days to 2.5 hours.
According to Patxi Fernández de Trocóniz, head of global trade at BBVA, the blockchain pilot marks a "leap forward" for effective international trade transactions.
The payment of the transaction was carried out using a letter of credit for the transport of 25 tons of frozen tuna, bought from Mexico by a company in Barcelona.
Utilizing blockchain for foreign trade allows the creation of a "safe and digital environment ... as the foundation for a global foreign trade marketplace," says BBVA Bancomer Corporate Banking and Governance head of strategy, Jorge Zebadúa.
The blockchain pilot forms part of BBVA's effort to digitize aspects of finance with the use of nascent technologies like blockchain, the release added.
Logistics container image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.