Blockchain Papers

Mohammad Ismail Majumder, Md. Mamun Habib

Letters of Credit (LCs) are pivotal in global trade finance, yet traditional processes are plagued by inefficiencies, fraud, and a lack of transparency, particularly in developing economies such as Bangladesh. This study investigates how three technological innovations Blockchain Database Integration (BDI), Collaborative Platforms (COP), and Compliance Automation (CAU) drive the evolution of a Sustainable Letters of Credit Supply Chain (SLCSC), mediated through the development of a Technology-based LC Supply Chain (LCSC). Drawing on a sample of 400 LC stakeholders in Bangladesh, the research employed a quantitative methodology using a reflective measurement model. Data were analyzed using Exploratory Factor Analysis (EFA) in IBM SPSS and Structural Equation Modeling (SEM) in IBM AMOS to assess reliability, validity, and the hypothesized relationships. The results indicate that Compliance Automation exerts a strong, significant positive effect on the LCSC (? = 0.661, p < 0.001) and Collaborative Platforms a weaker but significant effect (? = 0.087, p = 0.04), whereas Blockchain Database Integration has no significant effect (? = 0.016, p = 0.687). The LCSC, in turn, exerts a strong positive impact on the SLCSC (? = 0.938, p < 0.001). The findings demonstrate that compliance automation is the primary enabler of a technology-based LC supply chain, while the influence of blockchain remains constrained by prevailing infrastructural and regulatory conditions. The study’s principal contribution is to disaggregate the technological drivers of trade-finance digitalization into three empirically distinct constructs and to demonstrate that their influence on sustainability is fully mediated by the technology-based LC supply chain, providing structural- model evidence of this mechanism from Bangladesh’s banking sector. The study offers critical insights for banks, businesses, and policymakers seeking to modernize LC operations for enhanced efficiency, security, and eco- efficiency.

Ibrahim Nandom Yakubu, Khadijah Iddrisu

This chapter examines the transformative role of blockchain technology, artificial intelligence (AI), and smart contracts in reshaping trade finance and customs modernisation across Africa, with particular emphasis on the African Continental Free Trade Area (AfCFTA) framework. It explores how distributed ledger technologies are enhancing transparency and reducing transaction costs in cross-border trade, while AI-driven credit scoring and risk assessment models are expanding financial inclusion for underserved enterprises. The chapter analyses the deployment of smart contracts for automating trade documentation and compliance processes, and evaluates the impact of these technologies on fraud reduction and supply chain traceability. Drawing on real-world cases from the Pan-African Payment and Settlement System (PAPSS), Flutterwave, Kifiya, and the AfCFTA Digital Trade Protocol, the chapter highlights both opportunities and governance challenges, including data privacy, regulatory fragmentation, scalability constraints, and the digital infrastructure divide that characterises much of the continent. Policy recommendations for harmonised regulatory frameworks and capacity building are advanced.