Trade Digitization

Definition ∞ Trade Digitization refers to the conversion of traditional paper-based trade processes and documents into electronic formats. This transformation streamlines global commerce by automating procedures, enhancing data accuracy, and accelerating transaction flows. It encompasses digital bills of lading, electronic letters of credit, and other digital trade instruments. Digitization reduces manual errors and operational costs.
Context ∞ The global trade sector is actively pursuing trade digitization to overcome inefficiencies and reduce the environmental impact associated with paper documentation. Discussions often highlight the potential of blockchain and distributed ledger technologies to provide secure, immutable records for digital trade assets. This shift is crucial for fostering more resilient and efficient supply chains.