22. Commerce Finance & Provide Chain

22. Commerce Finance & Provide Chain
22. Trade Finance & Supply Chain

MIT 15.S12 Blockchain and Cash, Fall 2018
Teacher: Prof. Gary Gensler
View the entire course: https://ocw.mit.edu/15-S12F18
YouTube Playlist: https://www.youtube.com/playlist?listing=PLUl4u3cNGP63UUkfL0onkxF6MYgVa04Fn

Prof. Gensler explores commerce finance, its attributes, and the numerous exercise of blockchain know-how behind it.

License: Inventive Commons BY-NC-SA
Extra data at https://ocw.mit.edu/phrases
Extra programs at https://ocw.mit.edu


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39 thoughts on “22. Commerce Finance & Provide Chain

  1. incredible thanks mit im british but married to american was a repubklican this guy swinging me….feel usa finances safe in his hands grear guy and teacher

  2. this guy is so slever patient……i left school at 15 and find myself watching this to educate myselfenjoyed the whole 22 videos….im just shocked that these are meant to be the best studentas in the world james has such a closed mind to be at MIT…..by class 22 surely he can see both advantages in financing and the supply chains coffe neaz is a perfect example of a necassary blockchain…i wonder what job he got in the end

  3. Itd be interesting to see if the 15% of LC’s as a total trade finance include standby LC’s, and embedded LC facilities within working capital syndicate loans. Of course and to your point the growth of MNC’s and globalization has provided such large structured facilities to only larger companies. Most small to mid size companies sell on open account and have credit insurance which for their size and scale is much cheaper trade finance solution.

  4. This is an incredible series, but the supply discussion highlights some of why jargon has to be waded through. Most of the answers for why using a blockchain is some variation of "blockchain for the blockchain" which doesn't solve anything. Bitcoin works because everything need to trust Bitcoin can be seen on the blockchain. You don't have to trust any one individual but you trust the system. Supply Chain use of blockchain still requires you to to trust invidivuals before and after it is "on a blockchain." And as some of the students were getting at, why do you need a blockchain when a centralized database would be cheaper, faster and more efficient IF you still don't solve the trust issue that is the killer application of blockchain. That's why there are so few viable business surrounded blockchain that is not based on purely speculative hype because the truth is if you still have to trust individuals it would be more efficient, cheaper etc to have someone else handle it as a central authority. That's why there are hundreds of million and billion dollar business whose sole purpose is to facilitate and problem solve for other business transactions/actions. Once you read up on the constraints of blockchain and why Bitcoin works from a technical level you realize how many people either don't understand the technology on a fundamental level or b) don't understand businesses enough to realize that blockchain doesn't solve the problem or there are better ways to solve said problem. Interesting debate but solutions in search of problems is why there are so few actually thriving blockchain business uses that are not built on speculation first and foremost.

  5. Frustrating to hear students at the most prestigious university in the world miss the point so much about using blockchain for supply chain

  6. About 5 minutes in one of the students mentions a study by the Asian Development bank stating that 50% of Trade Finance credit applications made by SMBs/SMEs are declined vs. 7% for larger companies. Does anyone know where to find this report?

  7. Why are there no public-permissionless initiatives tryining to solve this issue? Instead I just see banks being involved in optimizing trade finance. Couldn't using blockchains like Ethereum being a base-layer for direct businesses transaction between importer and exporter with carriers as transport facilitators? Looking forward your responses!

  8. I think this is the class where Gensler fully realized that MIT and probably most of the highly esteemed academic institutions are filled with practical sheep rather than optimistic visionaries.

  9. This week I’m conversation I used…immutable, time stamped transaction ledger, medium of exchange, unit of account, and store of value.
    MIT, Thank you very much for this.

  10. the more I go through this course the more I see potential for new tech like blockchain to take over. but how can an average citizen invest in it? hoping to get the right token between eth, ada, polygon and the rest?

  11. If what companies wants is immutable, censorship resistance, interoperable, and trustless data source, use Bitcoin! Anyone can commit a data with a hash and put it into a Bitcoin block, then it is public and everyone can verify and see them. ANYONE can publish the data, and the Bitcoin is the most censorship resisted, trustless, and secure blockchain!!

  12. I think this was one of the most interesting lectures in the whole course. A lot of ideas were presented with the students debating, I think this will be the direction of blockchain use with NFTs. Tools to use for company efficiency and customer trust.

  13. I’ve worked in trade and SCF for the past 25 years with two of the largest American banks, both in NYC and London. I have to admit, both the professor and the students have achieved an impressive and nuanced understanding of one of the more esoteric products in banking. Separately, SCF in particular is one of the more “virtuous” products offered by banks where, if done properly, benefits accrue to all parties to the transaction. If you’re a banking geek like me, this is a big, complex and fascinating (but little known) corner of banking. And we as an industry need younger people taking an interest in this solution set. And it’s a corner of banking where you are really offering true value to your corporate, FI and commercial banking customers. I caught the trade bug after my MBA in 1998 and haven’t lost interest in it yet! Thanks to MIT for putting this out there and well done here folks.

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