France is taking a major step towards digitalizing trade finance with a new law that could significantly increase the adoption of decentralised ledger technology (DLT) in the country. The law aims to position France as a competitor to leading investment destinations like Germany and the UK. The draft bill, which has the backing of President Emmanuel Macron and his Renaissance Party, has already passed the lower house of parliament and is now being debated in the Senate.
Inspired by the United Nations’ Model Law on Electronic Transferable Records, the new law recognizes the use of digital documents and identities in global trade. It allows for the legal recognition of digital versions of paper documents and enables their interchangeable use. The law will also make amendments to various trade, tech, and finance laws to accommodate digital documents, eliminating the need for new legislation.
Alexandre Holroyd, the legislator behind the bill, believes that these reforms will enhance the global trade prospects of local companies and make it easier for them to secure financing. The most significant impact of the law will be seen in the speed and ease of trade processes. Instead of physically delivering dozens of documents, companies seeking financing for exports will now be able to share all the necessary documents digitally, resulting in faster and simplified processes.
The new law is expected to significantly boost the adoption of DLT for secure and cost-efficient document management and trade processes. IOTA, a leader in the field of trade finance, is set to be the biggest beneficiary in the blockchain world. IOTA is involved in the Trade and Logistics Information Pipeline (TLIP), a joint venture with TradeMark Africa, the World Economic Forum, the World Trade Organization, and the Global Alliance for Trade Facilitation, among others. TLIP aims to promote global trade and is underpinned by IOTA’s decentralised acrylic graph architecture.
In addition to its role in trade finance, IOTA is also a leader in digital identity solutions. The company recently partnered with UniMe ID wallet to enhance compliance with EU identity standards. This partnership further strengthens IOTA’s position as a leader in the field of secure and easily accessible digital identity.
Overall, France’s new law and its partnership with IOTA are expected to revolutionize trade finance and digital identity solutions, positioning the country as a pioneer in the field.