France is taking a significant step towards digitalizing trade finance with a new law that could greatly enhance the adoption of decentralised ledger technology (DLT) in the country. This move aims to position France as a competitor to leading investment destinations like Germany and the UK.
The proposed law, inspired by the United Nations’ Model Law on Electronic Transferable Records, has received the backing of President Emmanuel Macron and his Renaissance Party. It has already passed through the lower house of parliament and is now awaiting debate in the Senate, which is scheduled to take place in a month.
The Model Law on Electronic Transferable Records, established in 2017, provides legal recognition for the use of digital documents and identities in global trade. It allows digital versions of paper documents to be used interchangeably and will require amendments to various trade, tech, and finance laws to accommodate digital documents.
Alexandre Holroyd, the legislator behind the bill, believes that these reforms will benefit local companies in global trade by making it easier for them to raise financing. The new law will significantly streamline and expedite processes, as companies seeking financing for exports will only need to share the necessary documents digitally, eliminating the need for physical delivery of numerous documents.
The implementation of the new law is expected to have a substantial impact on the adoption of DLT in trade finance, providing added security and cost efficiency. IOTA, a leader in the field, is set to be the biggest beneficiary in the blockchain world. IOTA is involved in the Trade and Logistics Information Pipeline (TLIP), a joint venture with TradeMark Africa, the World Economic Forum, the World Trade Organization, and the Global Alliance for Trade Facilitation.
TLIP aims to promote global trade by leveraging IOTA’s decentralised acrylic graph architecture. Additionally, IOTA is at the forefront of digital identity solutions, partnering with UniMe ID wallet to enhance compliance with EU identity standards.
In summary, France’s new law on digital trade finance has the potential to revolutionize the industry by embracing DLT and digital documentation. This move positions France as a pioneer in the field and opens up opportunities for local companies to thrive in global trade. IOTA’s involvement in TLIP and its leadership in digital identity make it the primary beneficiary of this transformative legislation.