International trade involves transnational economic transactions, and plays an important role in adjusting the utilization factor of domestic production factors, improving the international supply and demand relationship, adjusting the economic structure, and increasing the fiscal revenue of various countries.
The current international trade settlement form is a non-cash settlement system based on bills, documents as conditions, banks as the backbone, and a combination of settlement and financing.
In recent years, with the rapid development of economic globalization, fierce competition in international trade, and increasing means of competition, some disadvantages in the current process of international trade settlement have gradually become apparent.!
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I. Disadvantages of Current International Trade Settlement Forms
1.Long cycle
Remittances, collections, or letters of credit are commonly used in international trade settlements. The fastest time is 24 hours. In case of holidays, it will be postponed to the next bank working day, and the interbank remittance time will be longer. If the D / P forward and D / A collection methods are used, after the bank issues a forward bill, it usually takes 2 to 3 months to expire.

1. High fees
   International settlement is the main source of profit for commercial banks' intermediary business, and fees are generally high. The banks that participate in the letter of credit business include issuing banks, advising banks, negotiating banks, paying banks, accepting banks, confirming banks, paying banks, and transferring banks. , Presentation bank, etc., the corresponding charge items are issuing fee, renewal fee, withdrawal fee, notification fee, negotiation fee, payment handling fee, acceptance fee, confirmation fee, reimbursement fee, transfer fee, telegram Fee, document review fee, postal delivery fee, handling fee, etc. And the list of charges has been "updating," such as non-conforming point charges, no redemption fees, and non-conforming document storage fees.
2. Risk of bill settlement
   At present, any international settlement method will use the most basic bill of exchange as the settlement tool. Among them, remittances and collections belong to commercial credit. Although commercial banks are also involved, the risk of losing both money and wealth may still occur.
3. There is a lot of fraud
   Letter of credit settlement is one of the most common international trade settlement methods. However, due to the characteristics of the method of letter of credit settlement, that is, the bank only reviews the documents without reviewing the goods during the settlement of the letter of credit. Fraud has caused huge losses to victims, but there are currently no formal legal provisions regulating such fraud.

Blockchain technology was born from Bitcoin. As the basic technology to support the development of Bitcoin, it is universally respected as one of the basic protocols for the next generation of global credit authentication and value Internet, and has received increasing attention from all walks of life.

Application advantages of blockchain technology in the field of international settlement

Blockchain, as the underlying mechanism of Bitcoin, is a set of decentralized, trustless, multi-point copying transaction ledger. It is quite different from the centralization in the modern financial system, which requires a trust relationship between the two parties in the transaction. It has great potential in reshaping the structure of the capital market system and the financial service environment. The use of blockchain technology for international settlement has the following advantages:

1.Decentralization
The decentralized nature of blockchain technology allows each node to have the same opportunity to participate in the update. Each node has its own "gene" characteristics, and there is no possibility of affecting financial transactions due to node abnormalities. Applying blockchain technology to international settlement, using digital asset tokens as the settlement medium can achieve point-to-point services, which does not require the storage of a server and saves a lot of maintenance costs; it can also make transactions more transparent and reduce normal transactions. Risk of criminal exploitation.

2.Low cost
The use of blockchain technology for international settlement is based on the value transfer of modern cryptography. By embedding corresponding programming scripts, smart contracts are used to handle some unforeseen transaction modes, ensuring that international settlement can be performed under the blockchain technology. Run fast. Each digital asset is a piece of business logic code that runs on the blockchain, has an independent life cycle, and is implemented through smart contract programming, eliminating the involvement of centralized institutions such as banks in the intermediate links, which greatly reduces Regulatory costs and the cost of soft constraints by law or contract. According to the McKinsey report, from a global perspective, the application of blockchain technology in B2B cross-border payment and settlement business can reduce the cost of each transaction by about 40%.

1. Convenient, efficient and safe
   The use of blockchain technology for international settlement can realize the free, free and instant exchange of different currencies between different banks, and the two parties in the transaction can realize real-time value transfer. At the same time, the use of blockchain technology can enable each transaction to find the transaction path and truly implement traceable operations. This also makes it difficult for illegal elements to change transaction information and avoid illegal behaviors during the transaction process.

However, currently there are problems with the use of blockchain technology for international settlement payments, such as high transaction and exchange thresholds and difficult connection.

1. ZERO3 International Settlement Center
   ZERO3 International Settlement Center, as a new type of international settlement and payment comprehensive service agency, relies on the advantages of global industry alliances to launch the ZERO3 blockchain interactive system to create a global cross-border settlement payment ecosystem based on blockchain technology, which is inclusive, efficient and compliant . Relying on the integration and convergence of global resources, we will build a global business ecosystem with diverse business scenarios, diverse consumer groups, and cross-regions to serve international trade settlement and payment.

As the direction and means for the future application of the blockchain, ZERO3 International Settlement Center plays the role of the service provider of infrastructure, exploring the possibility of realizing new international settlement payments in specific scenarios, and letting people feel that the blockchain brings Real convenience.
The ZERO3 system is based on blockchain technology, a new digital global payment token that is safe, compliant, efficient, and convenient-EUZ. By connecting with commercial resources in the global industry alliance, users' digital assets can not only pass the blockchain Technology is stored securely, and what is more important is that users can use digital assets in daily life and allow different currencies to convert between each other, thereby realizing asset liquidity.

At present, the blockchain industry has come out of the early stage of brutal growth, and is about to enter the era of comprehensive docking in various fields. An inclusive, secure, efficient, and convenient blockchain technology settlement payment application system is in line with the urgent needs of international trade settlement. On the way to popularize digital asset settlement payments and explore the application of blockchain technology, the ZERO3 International Settlement Center will always move forward and aspire to become a world-class new international settlement and payment comprehensive service agency.