VeChain, Mastercard and Alipay are among the heavyweights of the new Provenance APAC Council, which has already secured millions of funds for supply chain monitoring and pilot funding in the Asia Pacific region.
The consortium will provide comprehensive solutions for authenticating and tracking food, wine and products using blockchain, with a particular focus on exports of $ 76 billion from Australia to China.
Commercial financing for China products is courtesy of Mastercard outside of China and Alipay Australia. Products can be tracked using VeChain as a public blockchain or Provenance from Mastercard as an authorized ledger.
Supply chain monitoring was, alongside l, a key use case mentioned in the Australian government’s recent Blockchain National RoadmapAustralia’s share of the value of exports to China reached a record 38% in 2019, more than in any other country.
Faster payments in several steps
Since the economic blockade is seriously affecting the company’s cash flows, A single trade snag is to allow “tiered” payments to multiple parties when the shipments move throughout the supply chain.
For example, 30% can be paid automatically when the blockchain records a shipment processing customs in Australia, another 30% when it reaches customs in China, and the rest upon delivery. Instant payments can be credited to a digital wallet instead of waiting for the accounts to be paid a month later.
David Inderias, co-founder and CEO of Fresh Supply Co., a key provider behind the Provenance Board, said Mastercard and Alipay allowed the consortium to offer instant payments.
“”[Ofrecemos] the ability to instantly fund and facilitate payments, “he said.” We can make our customers pay faster, which means they pay with credit. The terms and conditions are usually considered a receipt plus 30 days, so it is exciting for many of our customers to get paid immediately. “
“So we say we accept B2B, extremely high bills and short term loans for 30 days so you can keep your money and have more working capital.”
“If I’m a buyer like Alibaba, I don’t have to use real money, I can use the credit as long as it is paid in 30 days. And the advantage of this is that the producer gets paid quickly.”
VeChain CEO Sunny Lu said this new ecosystem is extremely beneficial. “”The implementation of blockchain technology will undoubtedly help cushion the immediate economic impact of the pandemic on businesses and improve productivity by freeing up more resources and growth opportunities.“he said.
In addition to blockchain and financial companies, the consortium also includes facilities in the food industry, standardization agencies, packaging and labeling service providers.
Blockchain checks the chain “from the farm to the fork”
The main business providers behind the Provenance Council are all Australians: supply chain integration and middleware companies Fresh Supply Co., CSIRO-based fingerprint company Laava and Source Certain International Provenance Authentication Team.
According to Inderias, FSC, in collaboration with Mastercard, is already offering blockchain-verified trade finance of $ 80,000 a week for a leading Australian milk exporter and is in the process of integrating one of the country’s largest exporters of fishery products into hundreds of millions of exports a year.
Nicholas Giurietto, CEO of Blockchain Australia, expressed his support for the council and said:
“”The National Blockchain Roadmap identified agricultural supply chains as a key area where blockchain and related technologies can change our national capacities. Forming the Provenance APAC Council is an important step forward that enables us to advance projects that improve the transparency, efficiency and management of agricultural and other supply chains. “