VeChain, Mastercard and Alipay are among the heavy hitters who support the new APAC Provenance Board, which has raised millions of funds for tracking supply chains and pilot financing throughout the Asia Pacific region.
The Consortium will provide a comprehensive solution for authenticating and tracking food, wine and products using the blockchain, with a special focus on $ 76 billion export from Australia to China.
Trade financing will belong to Mastercard outside China, and Alipay Australia for goods going to China. Products can be tracked using VeChain as a public blockchain or Mastercard Provenance as permitted ledgers.
Supply chain tracking is the main use case identified in the Australian Government recently National Blockchain Roadmap and Australia’s share of exports to China reached a record 38% in 2019 – more than any other country.
Payment is faster at various stages
With the economic lock-up strongly affecting a company’s cash flow, a unique selling point is to enable payment of “milestones” to various parties as shipments move along the supply chain.
For example, 30% can be paid automatically when the blockchain records customs shipments in Australia, another 30% when it enters customs in China and the rest when shipping. Instant payments can be made using credit to a digital wallet, rather than waiting for the account to be completed a month later.
David Inderias, founder and CEO of Fresh Supply Co. – the core vendor behind the Provenance Council – said Mastercard and Alipay allow the consortium to offer instant payments.
“[We offer] the ability to finance and facilitate instant payments, “he said.” We can get our clients paid faster, so that means paying with credit. Usually trading terms are receipts plus 30 days, so it is very pleasant for many of our clients who can be paid directly. “
“So what we are saying is we will take B2B, a very large invoice and give them short-term credit for 30 days. So you can save your money so you have more working capital.
If I’m a buyer like Alibaba, I don’t need to use real money, I can use credit, as long as I’m satisfied within 30 days. And the benefit is that producers get paid quickly. “
CEO of VeChain Sunny Lu said this new ecosystem would be very beneficial. “The application of blockchain technology certainly contributes to protecting the direct economic impact of a pandemic for companies, and will help increase productivity by releasing more resources and growth opportunities,” he said.
Aside from the blockchain and financial companies, the consortium also includes food industry bodies, standard institutions, packaging and labeling service providers. High profile members include the $ 150 million Food Agility Cooperative Research Center, Blockchain Australia, Made in Australia, M&C Saatchi, the Tasmanian Brand, Indiledger and DNVGL.
Blockchain verified “paddock to plate”
The core commercial vendors behind the Provenance Council are all Australians: supply chain integration and middleware company, Fresh Supply Co., a digital fingerprint company supported by CSIRO, Laava, and authentic Source Source Specific International authentic clothing.
Inderias said the FSC had offered trade finance verified with a block chain worth $ 80,000 per week in partnership with Mastercard for Australia’s major milk exporters and was in the process of integrating one of the largest seafood exporters in the country which accounts for hundreds of millions of exports each year.
Blockchain Australia’s CEO, Nicholas Giurietto, voiced his support for the board, stating:
“The National Blockchain Roadmap identifies agricultural supply chains as the main area where blockchain and adjacent technologies can change our national capabilities. The establishment of the APAC Provenance Council is a step forward that will enable us to move forward with projects that will increase transparency, efficiency and management of agricultural and other supply chains. “
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