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E-invoicing, SCF & E-procurement

BBVA, Wave carry out cross border transaction between Europe and Latin America using blockchain

Tuesday 28 November 2017 | 12:19 PM CET

BBVA has teamed up with Wave to conduct the first pilot that uses blockchain to automate the electronic submission of documents in an import-export transaction between Europe and Latin America.

Thus, the bank was able to reduce the time required to send, verify and authorize an international trade transaction, which normally takes from seven to ten days, to just 2.5 hours, by using Distributed Ledger Technology (DLT) and blockchain solutions from Wave. The pilot also included the electronic signature of documents, the simultaneous distribution of copies to all parties and the reception of the ownership of the documentation at each step along the way.

The trial was run on an actual sale transaction between Mexico and Spain, in which Frime, a company of Barcelona, Spain, bought more than 25 tons of frozen tuna from Pinsa Congelados, of Maztlan, México. The payment was made using a letter of credit – the most common payment system in international trade transactions. BBVA Spain issued the letter and BBVA Bancomer processed the payment.

The operation was registered and securely validated at the same time for all parties, thanks to the distributed ledgers and the immutability of blockchain. This pilot demonstrates blockchain’s potential uses in the import –export process. The pilot focused exclusively on electronic document submission, but it could be applied to the final credit card payment and even to the prior procedures and financing of the operations.

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