- VeChain, Alipay and Mastercard support APAC Provenance Council, a consortium created to use blockchain technology in supply chain authentication.
- The consortium will emphasize trade between Australia and China. Exports between these countries reach $76 billion.
Industry giants Mastercard and Alipay support, together with VeChain, the APAC Provenance Council. The consortium has managed to raise a significant amount of money to drive the development of technology to enable supply chain tracking.
VeChain ensures product authenticity for trade between China and Australia
The APAC Provenance Council aims to find effective solutions to ensure the origin, destination and authentication of the quality of a product through blockchain technology. APAC will be in charge of ensuring the complete traceability of wine, food and others in the Asia-Pacific region. However, there will be a special emphasis on trade between China and Australia. Each year, these two countries have an estimated trade of $76 billion.
Products will be monitored and tracked with VeChain’s blockchain technology or through Mastercard’s authorized ledger. According to a report by the company Data Bridge, the VeChain Foundation is among the main agents, along with big players like IBM and Microsoft, which are key in the application of blockchain technology. The companies operate in a market with massive growth potential, according to the report.
Data Bridge expects that the widespread adoption of blockchain in the agricultural and food supply chain and the growing awareness of the benefits of blockchain will be the main drivers of market growth. In that sense, comes this announcement of cooperation between VeChain, Microsoft and Alipay.
The partnership will allow traded products to have different benefits for payments. Through the consortium, a product can be paid in parts: 30% can be paid when the product leaves Australia, another 30% when it passes the customs controls in China and the rest when it is delivered to its final destination. In addition, consortium members will have different methods of payment, this service includes digital wallets.
According to Fresh Supple Co. CEO and co-founder David Inderias, consolidated payments can be made in seconds with Alipay and Mastercard. Inderias said the following:
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.
On the other hand, VeChain’s CEO, Sunny Lu, highlighted the benefits of the implementation of the blockchain technology and its different use cases:
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.