www.ifc.org/ThoughtLeadership Note 43 | August 2017 Blockchain in Financial Services in Emerging Markets Part I: Current Trends Financial institutions around the world find themselves continually barraged by external innovations they are often unable to absorb and internalize. The emergence of innovative digital financial technologies has challenged traditional players in the sector by demonstrating new ways to deliver value across the entire financial value chain. Blockchain, or distributed ledger technology, is just such a disruptive—and possibly game-changing—innovation. Emerging markets are in general characterized by low banking penetration, the exit of financial players from certain markets, strong demand for financial inclusion both from individual consumers and small businesses, high levels of mobile penetration, and less developed business infrastructure and financial sector incumbents. These conditions in combination can be a powerful catalyst for the adoption of blockchain-based financial solutions and can provide the basis for a technological leap forward and a boost to financial inclusion and growth. Blockchain, or distributed ledger technology, is a digital, Figure 1: Blockchain basics distributed, immutable transaction ledger that replaces a central authority (or ‘middleman’) with algorithms. By doing so it offers numerous opportunities for cost savings while opening new market segments for existing financial institutions and new players alike.1 Distributed ledger technology is still in an early stage of development and deployment, yet it is widely thought to have the potential to deliver a new wave of innovation to the financial technology, or fintech, ecosystem by providing a ‘trustless’ distributed system to exchange value. This does not mean that the new system is not trustworthy. Instead, blockchain’s unique technology eliminates the need for ‘trusted’ intermediary to guarantee the authenticity of and register a transaction, and thus could have the same transformative impact for the transfer of value that the Internet had for the transfer of information. As described by the World Economic Forum, it is the future "beating heart" of the financial sector.2 (See Figure 1 for Blockchain basic functionalities). Bitcoin, a cryptocurrency that emerged in 2009, provided the first widespread use of blockchain. Since then, the technology has been synonymous with digital currencies. Yet the early abuse of bitcoin by criminal enterprises may have hindered the development of blockchain. Many other digital currencies have since emerged, including ether, the crypto-currency token used on the Ethereum distributed applications platform, the closest Source: Consult Hyperion challenger to Bitcoin. Today a number of experiments are taking place in the financial Indian situation is an example of how distributed ledger industry that attempt to broaden the use of blockchain beyond technology has the power to act as a disrupter, but also as an its use as a digital fiat. These range from relatively enabler to market players, changing business models and straightforward solutions such as money transfers, to more influencing the governance of the global financial system. complex financial instruments enabled by the introduction of ethereum and smart contracts, such as trade clearance and Recent venture capital developments also indicate that the settlement. financial industry is mobilizing around the potential impact of blockchain on their business, and is beginning to invest in Based on research conducted by Catalini and Gans (2016), related research and development and is testing applications.6 EMCompass Notes 40 and 413 detailed a conceptual framework Investment in blockchain is gaining momentum, with that assesses the evolution of blockchain adoption across approximately $1 billion of venture capital investment over the markets based on (i) the market power of incumbents; and, (ii) last 24 months ($500 million in 50 venture capital deals in 2016 the complexity and associated costs of the solutions proposed. alone) and the trend is expected to grow rapidly. It predicts that future developments will be propelled by the drive to create new markets, where competition and barriers to A 2017 McKinsey survey found that the global banking entry are lower, or to target process efficiencies in existing industry is expected to spend $400 million on blockchain operations, where current players maintain considerable market related projects by 2019. Some 70 percent of financial power. Additionally, value-added applications built on top of organizations are in the early stages of experimentation with the existing blockchain functionalities would be the early use cases technology and most executives expect to see material impact of blockchain by financial institutions, according to the in mainstreaming it in the next five years. A first rough estimate research.4 of limited applications, driven mostly from a cost reduction perspective, suggests significant value creation on the order of The framework also makes supports the idea that blockchain $70 to $85 billion.7 technology could have a strong impact in markets currently neglected or underserved by financial institutions, with a less This note seeks to: examine current macrotrends of the competitive market structure and high verification costs. These blockchain ecosystem in the financial services industry and conditions are typical in emerging markets. areas where the technology is being actively tested; analyze the implications of the technology on business models; and identify Current developments show that use cases that are relatively use cases with the most dynamic uptake, from the perspectives simple to design and implement are appearing. For instance, of both efficiency in existing processes, and of market creation. digital wallet AliPay is adding a bitcoin option for its customers. Visa has partnered with blockchain company Chain EMCompass Note 44 will provide a brief overview of specific to build Visa B2B Connect, an enterprise blockchain regional developments in emerging markets with regard to infrastructure to facilitate international financial transactions blockchain. for their corporate clients. Potential Impact of blockchain on the financial services sector-Current developments and trends Established financial institutions are more likely to use blockchain for intra-organizational projects intended to reduce The drive for efficiency in existing businesses. Most of the organizational complexity, improve efficiency, and reduce attention surrounding blockchain has centered on the United costs. Banks and major financial institutions are working both States and Western European countries, particularly on the collaboratively and independently to develop blockchain financial services industry, where the technology is expected to technology, as seen in the proliferation of global consortia (see have a major impact due to its ability to reduce transaction below). costs. As a result, blockchain innovation has been closely linked to Emerging markets, despite getting a later start on blockchain the efforts of large financial institutions that focus on process than the United States and Western Europe, have been catching efficiency initiatives. These firms have started testing up, with strong performances in 2016-17, in particular by Asia distributed ledger technology solutions to address specific (see EMCompass Note 44). And governments and regulators problems or improvements in their business processes, are taking notice, and trying to fashion appropriate responses. including data reconciliation, clearance, settlement, regulatory compliance, and entry into new segments or markets.8 In India, the legalization of bitcoin is a hotly-contested policy issue between the Ministry of Finance, which would like to tax Consistent with the conceptual framework mentioned above, it, and the Reserve Bank of India, which has declared bitcoin major global banks and financial intermediaries are working illegal and in breach of anti-money laundering provisions. 5 The closely with blockchain companies to explore use cases that are This publication may be reused for noncommercial purposes if the source is cited as IFC, a member of the World Bank Group. relevant to their business and learn how the new technology publicized departures by Goldman Sachs and Santander in may impact their legacy systems and infrastructure. They are 2016, which reportedly were due to governance conflicts. also entering into consortia (some more than one) to mutualize Corda, its underlying protocol, is technically more of a development and potential transition costs, as well as race to messaging protocol. Ripple, which offers a blockchain-like establish standards for the emerging technology. technology and network for faster settlement of international Most corporate initiatives so far have taken the form of payments, has more than 75 banking clients globally. enterprise or permissioned (private) blockchains, as companies In addition, financial services firms have also entered the attempt to manage a trade-off between leveraging the new but blockchain space as investors, with corporate venture capitalists still unproven innovation and preserving the integrity of their becoming the most active investors in bitcoin and blockchain existing business concerns. Post-Trade Distributed Ledger technology in 2016-17. Group brings together global banks, custodians, central Create new markets. On the other end of the spectrum, securities depositories, clearing houses, exchanges, regulators, blockchain is a disruptive technology that offers the possibility government agencies, and central banks from all continents to of reengineering economic models and enabling the share information and ideas about how distributed ledger development of markets and products that were previously technologies can transform the post-trade landscape. unavailable or unprofitable. The newly launched (February 2017) Enterprise Ethereum A great number of these new market opportunities that Alliance (EEA) aims to leverage large corporate investments in distributed ledger technology makes possible are related to: (i) the private Ethereum blockchain, bringing together Fortune 500 its offer of an alternative to fiat money, addressing in a new companies, startups, and other stakeholders. manner challenges of currency instability and political risk and, Interest in comparing alternatives to blockchain is also great, (ii) its ability to establish a digital identity in a rapid and cost- evidenced by broad industry participation to the R3 consortium, effective manner and thereby allow the financial inclusion of an alternative distributed consensus ledger.9 This group has previously underserved consumer segments. grown to include more than 70 global banks, despite the highly Figure 2: The march of financial services firms into bitcoin & blockchain start-ups, 2014 to February 2017 Source: CBInsights, cbinsights.com This publication may be reused for noncommercial purposes if the source is cited as IFC, a member of the World Bank Group. This development also creates opportunities for new startups markets in a derisking downward cycle. In 2015, European and entrepreneurs or established players from non-financial banks reduced their cross-border lending to emerging markets industries with a strong customer base, such as by $700 billion, according to the Bank of International telecommunications or ecommerce companies. Such actors are Settlements.13 In addition to the financial costs, Know Your rapidly moving to introduce new business models and services, Customer requests can delay transaction, stretching them to 30 and are transforming in the process the value chain and to 50 days to complete. challenging traditional players such as banks. Consistent with the framework mentioned in EM Compass notes 40 and 41, the A blockchain-based automated compliance system can provide majority of these initiatives focus on value-added yet fairly an innovative and cost-effective alternative to managing simple design applications. regulatory requirements by acting as a decentralized public key infrastructure to establish and secure digital identity. The These efforts have originated mainly with new companies blockchain can be viewed as a decentralized certification entering established markets, targeting emerging markets authority that can maintain the mapping of identities to public directly or indirectly. They are not exclusively based in keys. Smart contracts can add sophisticated logic that helps developed markets, although the best funded ones are, for now, with key revocation and recovery, decreasing the key U.S.-based. A huge portion of the total venture capital management burden for the end user. The potential positive investment has been captured by a handful of startups in the impact of this innovation in reliable digital identification has digital wallet and capital market services space ($625 broad implications for a host of financial services, including million).10 Regardless of their origin, these new players are trade finance and cross border payments and digital wallets (see targeting segments closely related to the economic activity of below), and also for the future evolution and mainstreaming of developing markets, such as remittances and trade finance. blockchain technology beyond fintech, into industrial This is a significant phenomenon, indicating that emerging applications and Internet of Things integration. markets can become a dynamic testing ground for new business Using distributed ledger technology to store financial models, where a high demand for financial inclusion and a information can eliminate errors associated with manual relative absence of entrenched legacy systems can accelerate auditing, improve efficiency, reduce reporting costs, and the adoption of new technologies—and specifically of potentially support deeper regulatory oversight in the future. blockchain. The potential for extending banking services in these markets is huge, with two billion adults worldwide Currently there is no standardization in the identifying lacking access to financial and credit services.11 Global information customers must submit to financial institution, and payments and remittances is a case in point: it is a $4 trillion these institutions often duplicate efforts in performing Know market with transaction fees that range from 5 to 30 percent. Your Customer checks, with burdensome transaction costs on both banks and customers. With a distributed ledger Blockchain potential use cases and applications in financial technology, a rigorous professional validation is done once and services industries. Blockchain’s potential to disrupt the this verified identity document can be used for all subsequent financial services ecosystem has been widely discussed, transactions. On a blockchain, that identity can develop over including its capacities for operational simplification, time as a person accrues attestations, property, and other types regulatory efficiency improvement (real-time monitoring of of licenses and authoritative powers. As the U.S. Financial financial activity between regulators and regulated entities), Crimes Enforcement Network regulations and European Anti counterparty risk reduction (agreements are executed in a Money Laundering directives move toward stricter customer shared, immutable environment), disintermediation for clearing due diligence and data collection, blockchain-based Know and settlement of transactions, and transparency and fraud Your Customer systems are likely to help government and minimization in asset provenance and capital raising. Given the financial institutions simplify Know Your Customer wide range of potential use cases, we have chosen to focus on syndication. three dynamic and well documented subsectors, where use cases are being tested and have concluded or are in the process A blockchain identity system will allow end users to own and of concluding a proof of market, including in the context of control their personal identity, reputation, data, and digital emerging markets. assets; securely and selectively disclose their data to Anti-money laundering and customer identification counterparties; log in to and access digital services without programs. The reinforced regulatory framework that followed using passwords; digitally sign claims, transactions, and the financial crisis has significantly increased the costs of documents; control and send value on a blockchain; and interact compliance for banks (anti-money-laundering compliance costs with decentralized applications and smart contracts. have risen 53 percent since 201112). This has forced banks to exit certain markets and segments and has left emerging This publication may be reused for noncommercial purposes if the source is cited as IFC, a member of the World Bank Group. Companies can establish a corporate identity, easily onboard compatibility. Multiple checkpoints delay payment and slow new customers and employees, reduce liability by not holding the shipment of goods. Additionally, trade finance is sensitive customer information, and increase compliance. particularly affected by increased compliance requirements and de-risking, as outlined in the previous section.18 Respondents to Sample use cases. Several startups from around the globe are 2016 IIC Global Survey on Trade Finance identified anti- taking the concept to market. U.S.-based UPort has developed money laundering and Know Your Customer requirements as an Ethereum-based digital identity management product to the largest impediment to trade finance. 19 The consequences for deliver a ‘self-sovereign identity’, targeting both end- global trade and emerging market growth are enormous.20 consumers and enterprises. Cambridge Blockchain LLC is developing digital identity software with several leading global Blockchain can positively transform a number of industries by financial institutions, with a deployment planned for late 2017. introducing transparency, traceability, and immutability to their Gem focuses on getting companies within the same industry to supply chains. Using distributed ledger technology to store share information on Know Your Customer via blockchain financial details can prevent documentary fraud, facilitate the technology, where banks would be able to vet a customer by real-time approval of financial documents, unlock capital tied relying on the work another bank has already done. up in the process of waiting for clearance, reduce counterparty risk, and enable faster settlement. London-based CreditsVision is looking to create a blockchain of blockchains, connecting various permissioned and public With blockchain, multiple copies of the same document no systems so that a digital identity could be truly universal. longer need to be stored on numerous databases across various Singaporean investment portal KYCK! has partnered with IBM participating transaction entities, and the approval process does to develop a secure blockchain network to enhance not need to be sequential. Since each participant on the network identification validation, shared between banks and quickly updates the chain to reflect the latest transaction, it government organizations. Indian startup Elemential provided removes the need for multiple copies of the same document of the blockchain technology for a Know Your Customer data trial information stored on numerous databases. in a collaboration with the National Stock Exchange of India A single blockchain has all the necessary information in a single and several banks—ICICI Bank, IDFC Bank, Kotak Mahindra digital document, simultaneously accessible to all members of Bank, IndusInd Bank and RBL Bank—as well as HDFC the network. Documents on the distributed ledger allow all Securities, a Mumbai-based brokerage. parties to conduct diligence for credit adjudication, check for This represents an opportunity for incumbent financial anti-money laundering and trace the location and ownership of institutions to adapt their traditional banking models and to gain goods. Banks no longer need intermediaries to assume risk, and a competitive advantage vis-a-vis new entrants, by positioning compliance officials can enforce anti-money laundering and themselves as ‘the stewards of identity’, in effect serving as customs activities without delay. authenticators.14 Additionally, using smart contracts (self-executing digital Trade finance contracts) to codify agreements could lead to new products for Trade finance is the lifeline of global trade. The International alternative financing, securitization of trade obligations, and Chamber of Commerce estimates that the global trade financing downstream factoring. gap is around $1.6 trillion, with particularly dire consequences Sample use cases: If banks and incumbent institutions do not for small and medium-sized businesses and for growth in seize the opportunity, upstart innovators probably will. This emerging markets.15 In this segment, financial institutions rationale seems to be the motivation behind some early live bridge the gap between exporters, who need guarantee of trials conducted by global banks in partnership with innovators payment before they can ship, and importers, who require data in trade finance blockchain applications to provide a proof of on whether goods have been delivered. Roughly $18 trillion of concept. annual trade involves some form of finance, be it credit, insurance or guarantee.16 The size of the trade finance market The Society for Worldwide Interbank Financial itself exceeds $10 trillion per year.17 However, its supply chain Telecommunication (SWIFT) has announced an initiative system is cumbersome and time-consuming, creating potential exploring the use of blockchain in trade finance. Seven major risks for the parties involved, where Anti-Money Laundering European banks (KBC, Deutsche Bank, HSBC, Natixis, and authenticity issues weigh heavily. Rabobank, Société Générale and UniCredit) are partnering on a new blockchain-based permissioned trade finance platform, Exporters use invoices to secure short-term financing from Digital Trade Chain, to manage open account trade transactions multiple banks, which increases the consequences should the for both domestic and international commerce, from initiation delivery fail. Parties use different platforms, raising the odds of to settlement. DTC allows authorized parties to track the miscommunication, fraud, and problems with version progression of those transactions. This publication may be reused for noncommercial purposes if the source is cited as IFC, a member of the World Bank Group. The goal is to cut transaction costs for European businesses, Sample use cases: There are numerous startups proposing particularly those of modest-sized firms. Similarly, Standard crypto-based global payments and peer-to-peer digital cash Chartered is leading the Distributed Ledger Technology Trade solutions: Abra and Ripple in the United States, BitPesa in Finance Working Group (formed under the Hong Kong Kenya, BitSpark in Hong Kong, OkCoin in China and Monetary Authority’s Fintech Facilitation Office) to deliver a OkLink/Coinsensure in India, CoiNnect Mexico/Argentina, proof of concept, developed in collaboration with the Bank of Rebit and Coin.ph in the Philippines. In addition, large banks China, Bank of East Asia, Hang Seng Bank and HSBC and are in the process of testing different applications as consortia Deloitte Touche Tohmatsu.21 and in partnership with technology providers to reduce transaction costs in their value chain. Financial giant SWIFT is In another pilot, HSBC joined forces with Bank of America participating in the Hyperledger Fabric Project; South Korean Merrill Lynch and the Infocomm Development Authority of bank KB Kookmin is partnering with CoinPlug, Indian ICICI’s Singapore (IDA) to developed a prototype solution built on blockchain is developing a blockchain remittance project with blockchain for letters of credit in a smart contract. The Emirates NBD Bank and others. consortium used the Linux Foundation open-source Hyperledger Project Fabric (whose development was supported Box 1: BitPesa by IBM). In the United Arab Emirates, Infosys has partnered Kenyan start-up Bitpesa, a company providing foreign with Emirates NBD and ICICI to deliver the first blockchain exchange and business-to-business bitcoin based payment based trade finance (and remittances) solution in the region. services in Kenya and several African countries, has been able to leverage the existing financial ecosystem by Global payments (remittances). Cross-border payments is a connecting to the M-Pesa money network, a subsidiary of sector ripe for disruption. Currently, both individual consumers telecom company safari.com and provider of mobile and small- and medium-sized enterprises face high transaction payments and a major incumbent player (more than half of fees, long delays and uncertainty in making cross border Kenya’s adult population has an M-Pesa wallet). payments. Money Transfer Organizations including Western Union, MoneyGram, and Euronet Worldwide spent decades Despite a legal confrontation with the mobile money building franchise businesses across the globe. The size of the network in 2015, BitPesa has raised additional financing market is also considerable, with 2016 remittances estimated at from several venture capital firms in 2016 to move forward over $601 billion.22 Today, the global remittance industry takes with its international expansion across East Africa. out $40 billion annually in fees.23 Such fees typically stand around two to seven percent of the total transaction value, Challenges Ahead depending on the volume of the corridor, and foreign exchange Distributed ledger technology is still evolving and will face fees represent 20 percent of the total cost.24 Bank wire transfers numerous hurdles, some technical, some regulatory, and some are even more expensive, with fees of 10 to 15 percent. Banks institutional, as it moves toward maturity. Concepts are being also tend to focus only on specific corridors with a strong market-tested but they will not be able to reach their full branch network, leaving some corridors without access to the network potential without industry collaboration, common money transfer services they need. standards, and significant transition costs to enable the migration from the existing financial infrastructure. The market segment is already being unbundled by a number of On the technological side, concerns relate to the (i) scalability dynamic fintech start-ups such as Transferwise and Remitly and transaction speed of distributed ledger systems, for (see EMCompass Note 22 on remittances).25 Blockchain permissionless blockchains such as bitcoin (ii) the technology can drive efficiency in the process and reduce interoperability of different ledgers and those with the existing associated costs for financial intermediaries and customers by: legacy systems and transition costs; (iii) network security and (i) providing a cost-efficient process to establish digital identity resilience of the system against potential cyberattacks (a recent and by extension Know Your Customer verifiability; and (ii) setback for Ethereum); (iv) the protection of data privacy. providing a digital fiat for currency conversion. With distributed ledger technology, the sender’s digital identity The recent rise of customer acquisition costs for crypto payment profile sufficient for banks and Money Transfer Operators. solutions providers and their continued dependence on traditional networks to reach customers indicates that the A smart contract containing the remittance information delivers market will require the coexistence of both traditional and the funds directly to the beneficiary’s institution while digital players for some time in order to build bridges to the simultaneously notifying the appropriate regulator. Distributed broader economy. ledger technology could enable new business models (for From the regulatory and governance perspective, we are far example micropayments) and institute newer models of from having a clear framework and industry-wide standards regulatory oversight. that stakeholders will need for full adoption of the new technology. According to a 2017 study by the Cambridge This publication may be reused for noncommercial purposes if the source is cited as IFC, a member of the World Bank Group. Center of Alternative, less than half of payment companies Innovation is only as good as the effectiveness and profitability based in Asia-Pacific, Europe, and Latin America hold a formal it can deliver. This is the promise that distributed ledger government license, and forty percent of companies surveyed technology-associated initiatives will be called on to deliver in would like to see more regulatory clarity. 26 a sustainable fashion, whether in the form of creating/growing Regulation will have to reflect and accommodate the novel a market or generating cost savings through greater features of blockchain and recognize their legal validity (digital transparency and efficiency. Only then will move beyond the identity, Know Your Customer, dispute resolution mechanisms, pilot stage to full-scale industry adoption, thereby leveraging smart contracts), particularly for open distributed ledger the full network effects and triggering the tipping point of the technologies where there is no entity in control of the ledger. transformation process. Recent defections from the R3 blockchain consortium have “Experiment patiently, accept failures, plant seeds, protect highlighted the governance and design complexities of saplings, and double down when you see customer collectively designing a globally relevant and adoptable delight.”—Jeff Bezos, CEO, Amazon.com, Letter to solution. Shareholders, 1997. Conclusion Financial institutions, fintech technology companies and even About the Author governments are still experimenting and participating in proofs Marina Niforos is the founder and Principal of Logos Global of concept to better understand the possibilities and limitations Advisors, a strategic advisory firm to high-growth startups and of blockchain. As financial markets evolve with respect to large multinationals, helping them form partnerships and distributed ledger technology, companies will face game- leverage opportunities for growth. She is also Visiting Faculty theory-type decisions. Being early adopters of distributed of Leadership at HEC Hautes études commerciales de Paris, a ledger technology across the ecosystem may provide them with French business school. a competitive advantage but it may also derail their ongoing (marina.niforos@logosglobaladvisors.com) business interests. Acknowledgments If they are too late to enter the market, they may irreversibly The author would like to thank the following colleagues for lose ground to competitors. This dilemma is exacerbated by the their review and suggestions: Vijaya Ramachandran, Senior fact that the biggest impact from distributed ledger technology Fellow, Center for Global Development, Washington, DC; will be achieved only when a critical mass of the ecosystem Michael Pisa, Policy Fellow, Center for Global Development, participates and network effects are realized. Washington, DC; Matthew Saal, Head, Digital Financial Services, Financial Institutions Group, IFC; Susan Starnes, The most valuable distributed ledger innovations cannot be Strategy Officer, Sector Economics and Development Impact, developed in isolation; they require collaboration among Economics and Private Sector Development, IFC; and Thomas participants, exchanges, and regulators. The adoption process Rehermann, Senior Economist, Thought Leadership, will not be smooth and there will be winners and losers. Economics and Private Sector Development, IFC. With respect to emerging markets, the ecosystem seems fertile Additional EM Compass Notes about Blockchain for adoption, propelled by high demand, particularly in serving This note is the third in a series of five complementary EM financially excluded segments, as well as a hedging strategy Compass Notes by this author: The notes focus on: (1) a general through bitcoin and other crypto currency in conditions of overview of blockchain technology (Note 40), (2) an outlook currency instability and political risk, as is the case in parts of for blockchain’s implications for emergin g markets (Note 41); Latin America and Africa. (3) a general overview of the impact of blockchain on financial Less financially developed markets are focusing on financial services (this note), (4) an emerging market regional analysis of inclusion initiatives with blockchain-run digital wallets and blockchain developments in financial services (Note 44) and, mobile payments. In addition to the factors identified in the (5) implications of the technology beyond financial technology predictive framework based on market structure (see (forthcoming). EMCompass Notes 40 and 41), three additional critical success Please also refer to EM Compass Note 38, “Can Blockchain factors can weigh heavily on the penetration of the technology. Technology Address De-Risking in Emerging Markets?” by These are: (i) the degree of development of the general Vijaya Ramachandran and Thomas Rehermann, for how technological ecosystem and the availability of the requisite blockchain can be used to mitigate de-risking by financial skill pool; (ii) the ability to mobilize capital for innovators; and institutions, which affects recipients of remittances, businesses (iii) a regulatory environment that encourages experimentation that need correspondent banking relationships. and public-private collaboration to establish standards and resolve related issues. This publication may be reused for noncommercial purposes if the source is cited as IFC, a member of the World Bank Group. 1 Horowitz, K. et al. 2016. “US Digital Banking: Could the Bitcoin 13 ICC Report, 2016. “Trade Finance Landscape in Africa: IFC Blockchain Disrupt Payments?” Citi Research Report. 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