VeChain (VET), Mastercard, and Alipay are among the leading players backing the Asia Pacific Accreditation Cooperation (APAC), which focuses on Australia’s $76 billion exports to China, Herald Sheets website reported.
The APAC aims to provide solutions for authenticating and monitoring food and other stuff using blockchain technology.
Mastercard will manage trade financing outside China, Alipay will handle products from Australia to China, and VeChain (VET) will be the public blockchain for commodity monitoring.
David Inderias, CEO of Fresh Supply, said Mastercard and Alipay supported the consortium to provide instant payments.
“[We offer] the ability to finance and facilitate payments instantly,” he said. “We can get our clients paid faster, so that means paying by credit. Typically terms of trade is receipt plus 30 days, so it’s exciting to a lot of our clients who can get paid instantly.”
“So what we’re saying is we’re taking B2B, extremely large invoices and fronting them short term credit for 30 days. So you can hold on to your cash so you have more working capital,” Inderias said.
“If I’m a purchaser like Alibaba, I don’t have to use real money, I can use credit, so long as I settle in 30 days. And the benefit of that is the producer gets paid quickly.”
On the other hand, CEO of VeChain Sunny Lu said the move will improve productivity significantly.
“The implementation of blockchain technology certainly contributes to buffering the immediate economic impacts of the pandemic for enterprises, and will help improve productivity by unleashing more resources and growth opportunities.”
VeChain expands business
Cryptolydian earlier reported that Shanghai Gas has signed a partnership agreement with VeChain to develop a blockchain-based energy project.
The move aims to lower operating costs and boost supply chain efficiency, as well as establishing a trust-free “Energy-as-a-Service” ecosystem.
As one of the countries that seek to meet the growing demand for natural gas, China is facing the challenge of effective management of its domestic market.